Buy vs. Rent Comparison
Many people struggle with the dilemma of whether they should buy or rent. The chart below shows a cost comparison for a renter and a homeowner over a 7 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