Buy vs. Rent Comparison

 

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 lessthan the rental payment after 3 years