Buy vs. Rent Comparison

BUY VS. RENT: COST COMPARISON

The chart above 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 payment is lower than the renter's monthly payment. With the tax savings of home ownership, the home owner's payment is less than the rental payment after 3 years.

Is now the right time for you to buy a home? You have many options and choices to make. Buying a home is a big responsibility, financially and emotionally, but most people want to own a home.

Owning a home has many benefits, when you make a mortgage payment, you are building equity and that's an investment. Owning a home also qualifies you for tax benefits that may assist you in dealing with your new financial responsibilities-such as homeowners' insurance, real estate taxes and upkeep-which can also be substantial. But given the stability and security and security of owning your own home, they are definitely worth it! Owning your own home can be a great source of pride and stability.