Buy or Rent?

BUY or RENT? This is a question that homebuyers always asked. It is not a question that is easy to answer. It all depends on the readiness of the individual to commit to taking on a mortgage, taking care of a house and availability of the right home.

Buy vs. Rent Comparison as published by The National Association of Realtors. 

The chart below shows a cost comparison for a renter and a homeowner over a seven year period. The renter starts out paying $800 per month with annual increases of 5% The homeowner purchases a home for $110,000 and pays a monthly mortgage of $1,000 After 6 years, the homeowner's payment is lower than the renter's monthly payment With the tax savings of homeownership, the homeowner's payment is less than the rental payment after 3 years.

There is another way of  understanding the financial impact of buying vs renting. There is a tool that can be used to determine the net cost of buying a home vs the cost of renting over time.

Please click here to compare your costs of buying and renting. Click "Advanced options" to change inputs like down payment, mortgage rate, income tax rate, and inflation rate.