Brian Roslawski
Your Trusted Real Estate Advisor.
Preferred Phone: 414-241-0123    Office Phone: 414-906-4500
Renting Vs Owning - A Comparison

In many cases, the amount of money a renter spends on rent can be about the same as or less than the amount a homeowner spends on a mortgage. With the tax benefit for homeowners, the savings can be significant.

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 less than the rental payment after 3 years

Years

Rent Payment

Mortgage Payment

Monthly Difference

After Tax Savings

Yearly Difference

After Tax Savings

1

800

1000

-200

-50

-2400

-600

2

840

1000

-160

-10

-1920

-120

3

882

1000

-118

+32

-1416

+384

4

926

1000

-74

+76

-888

+912

5

972

1000

-28

+122

-336

+1464

6

1021

1000

+21

+171

+252

+2052

7

1072

1000

+72

+222

+864

+2664

8-30

 

 

Savings increase every year

 

 

 

 

Buy vs. Rent Comparison Chart

 

Advantages

Considerations

Buy

Property builds equity

Responsible for maintenance

Sense of community, stability, and security

Responsible for property taxes

Free to change decor and landscaping

Possibility of foreclosure and loss of equity

Not dependent on landlord to maintain property

Less mobility than renting

 

Rent

Little or no responsibility for maintenance

No tax benefits

Easier to move

No equity is built up

 

No control over rent increases

 

Possibility of eviction


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Realty Executives Integrity
412 E. Silver Spring Drive • Whitefish Bay, WI 53217
Preferred Phone: 414-241-0123 • Office Phone: 414-906-4500
Fax: 414-908-9888