Rent vs. Buy Analysis

1. $1,600/month in rent versus a $295,000 loft with 5% down.

You would save approximately $92,686 (in today's dollars) by buying a home, rather than renting, over a 10 year timeframe.

Rent vs. Buy Analysis

 

Rent

Buy

Rent and fees

$241,429

 

Mortgage payments

 

$168,000

+ Property insurance

 

$37,418

+ Property taxes

 

$41,500

+ Opportunity cost (equity)

 

$30,000

- Tax savings (interest/taxes)

 

$(42,100)

- Appreciation (3%)

 

$(105,000)

= Total cost

$241,429

$129,318

Present value at inflation

$199,111

$106,425

Difference

 

$92,686

 

*Above calculations make assumptions on appreciation, loan, maintenance costs, insurance, & a range of other buyer specific criteria.  These numbers are illustrative only and make no guarantees or representations by developer.