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.