Renting vs. Owning
Jan 29th, 2007 | By bea | Category: Blog, Buyer AdviseThere are many advantages to buying a home versus renting one.
In many cases, the amount of money a renter spends on rent can be about the same as or less than the amount a homeowner spends on a mortgage. But with the tax benefit for homeowners, his savings can be significant.
Renting can cost a lot more than than owning, according to a chart published by Ginnie Mae:
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
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