Renting Versus Owning A Home

Dated: April 29 2021

Views: 308

Rent vs. Own

Here's what it will cost you to buy a $235,000 home versus renting at $1,500 per month.

Initial Costs

$10,576$4,500
Cost to buy includes 3.5% down payment and 1% closing costsCost to rent includes security deposit, first and last month's rent

Recurring Monthly Costs

$1,411$1,500
Mortgage PaymentRent Payment

Over a 5 year period, the cost of buying a home is $47,182 less than renting one!

5-Year SummaryBuyingRenting
Cost (initial cost and monthly payments)$92,236$91,500
Property Taxes (2%)$23,500$0
Home Value Appreciation (2%)$37,538$0
Tax Savings (15%, interest and property tax)$8,055$0
Equity Increase (due to principle reduction)$28,825$0
Net Expense$44,318$91,500

Buying a home instead of renting one is a wiser choice.

*Based on a median home price of $235,000 and average monthly rent of $1,500, 3.5% down payment, 3.5 interest rate, 1% annual maintanance cost, 2% annual home value increase. The above numbers are an estimate and are subject to change.

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Kandi Sue Phillips PA

Kandi Phillips, your Florida REALTORĀ® Serving Naples, Ave Maria, Orangetree, Bonita Springs, Estero, Fort Myers, Cape Coral, Lehigh Acres and Labelle. Kandi Phillips embodies integrity, hard work, p....

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