sdr– I meant to remark on your DeLorean comment as I use it quite frequently myself (although I always say mine is in the shop). Just another example of how we’re probably of similar vintage!
Anyway, I’d like to come up with some real examples since I think it’s all just a little easier when posed with dollars and cents versus percentage.
I’ll do my situation first, I’d just like some input on making the comparison fair. I’ll start and you poke holes:
Cost of ownership: Interest, taxes, insurance
Cost of renting: Rent, insurance
Benefit of ownership: Interest and tax deduction
Benefit of renting: Investment return on down payment
Cost – Benefit = True Cost
For the ownership side, I’d still like to amortize the loan over 30 years, I just don’t want to consider the principal part of the cost.
I also am making the major assumption that there is no appreciation for ownership (for the foreseeable future), and I won’t consider rent increases either since as a renter, I can re-evalute the situation every year.
