Which is better to rent or buy?

Credit and mortgage advice Forums Home Insurance Which is better to rent or buy?

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    • #361454

      Based on the following data, would you recommend buying or renting?
      Rental CostsBuying Costs
      Annual rent, $ 7,380Annual mortgage payments, $ 9,800 ($ 9,575 is interest)
      Insurance, $ 145Property taxes, $ 1,780
      Security deposit, $ 650Insurance/maintenance, $ 1,050
      Down payment/closing costs, $ 4,500
      Growth in equity, $ 225
      Estimated annual appreciation, $ 1,700
      Assume an after-tax savings interest rate of 6 percent and a tax rate of 28 percent.
      Rental CostsBuying Costs
      ______Rent_______Mortgage payments

      _______Taxes, insurance, maintenance

      ______Interest lost on security deposit
      _______Interest lost on down payment, closing costs

      ______Total rental costs
      _______Growth in equity
      _______Annual appreciation

      _______Tax savings for mortgage interest

      _______Tax savings for property taxes
      _______Total buying costs

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