[scripps]

Thanks, PerryChase. But I’m looking for something larger – 4 bedroom, 2000 sqf plus.

[scripps]

Yes. The number also takes into account 2.5% rise in rent annually.

And if he stays for 10 years instead of 5 years, the conclusion is quite different:

By buying your home versus renting you will have saved $17,889.46 over the next 10 years.

You can try changing the assumptions on the site and see different results. It’s quite fun!

[scripps]

Movielover,

There is a great rent vs. own calculator on the eloan web site:
http://www.eloan.com/s/show/calc_rentvsown?sid=hYg8zBMtVhvV-qUOS-0N3moI9ss&user=&mcode=

Here is what I got using the figures you gave:

Assumptions: (you can adjust these assumptions)
Monthly Rental Payment: $ 1200
Purchase Price of the Home: $ 200,000
Anticipated Down Payment: $ 40,000
Mortgage Interest Rate: 6%
Number of years you plan on keeping the home: 5 years
Yearly Appreciation on the Home: 0%
Closing Costs to Buy the Home: 2%
Annual Property Taxes: 1.25%
Annual Home Maintenance: 0.8%
Closing Costs to Sell the Home: 6%
Income Tax Rate: 28%
Your Savings or Investment Rate: 5%
Monthly Renter Insurance: $30

Rent versus Own
Rent
Total Payments in five years: $77,491.13
Tax Savings: $0
Investment or Appreciation: $10,210.25
Own
Payments: $97,637.20
Tax Savings: $20,550.22
Investment or Appreciation:$5,613.57

Conclusion
By renting your home versus buying you will have saved $4,192.54 over the next 5 years.

[Author]

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