Should I Buy or Rent?

Buying v. Renting Calculator
Rent Info
Monthly Rent : ($)
Annual Rent Increase : (%)
Property Information
Home Value : ($)
Annual Maintenance : ($)
Annual Appreciation : (%)
Years Before Sell : (Yrs)
Selling Cost : (%)
Loan Information
Amount : ($)
Interest Rate : (%)
Length : (Yrs)
Points : (%)
Taxes And Insurance Information
Your Tax Rate : (%)
Annual Taxes :
Annual Insurance :
Annual PMI :
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Financial Analysis (Switch to Plain English)
  Rent Buy
Taxes and Insurance : $0.00 $50,400.00
Total PMI : $0.00 $10,333.33
Total Maintenance : $0.00 $17,500.00
Total Payments : $161,125.21 $238,644.87
Average Monthly Payment : $1,918.16 $2,841.01
Monthly Rent Savings : $922.85
Tax Savings : $0.00 $11,025.00
Total Rent Savings : $66,494.67
House Appreciation Value : $572,525.67
Proceeds Minus Costs : $532,448.87
Loan Balance : $344,237.88
Equity Appreciation : $188,210.99
Home Purchase Benefits : $121,716.32
Plain English Help (Switch to Financial Analysis)

Is it financially better to buy a home or to rent? The answer to this question depends upon how much the home costs, how much you are paying for rent, and how much you will have to pay each year in order to maintain your home.

If you were to pay $1,700.00 per month, for example, and the average rental payment increase was 4.000%, you would pay $161,125.21 in a 7 year period toward rent. If you purchased a home and borrowed $400,000.00 with a 4.000% interest rate, and you paid $2,500.00 every year toward its maintenance, you would pay $238,644.87 in a 7 year period toward mortgage payments if your Federal tax rate is 28.000%, you pay $1.25 in taxes each year and your annual insurance rate is $0.35.

When you consider your tax benefits and the appreciation of your home, however, you will actually SAVE money by purchasing a home. If your home shows an annual appreciation of 3.500% and your selling cost is 7.000%, your house appreciation value will be $572,525.67. As a result, your total home purchase benefit will amount to $121,716.32.

DISCLAIMER: Calculations performed by Fifth Avenue Realty's financial calculators are mathematical estimates for illustrative purposes only. There is no warranty, express or implied, regarding the accuracy of the results or the applicability to your financial situation. The information provided on or through the Fifth Avenue Realty website and this calculator should not be relied upon as the only source of information. We encourage you to contact us today for personalized advice or consult your own financial advisor before making any financial decisions.