Which is better to rent or buy?

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

This topic contains 0 replies, has 1 voice, and was last updated by  Anonymous 8 years, 3 months ago.



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    Anonymous

    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

    ______Insurance
    _______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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