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The True Cost of Home Ownership

The True Cost of Sources: Kiplinger, NY Tìmes HOMEOWNFRSHIP 田田 田田 田田 田 田田 田 田田 Is it better to Buy or Rent? The decision depends on many factors, most important of which are how fast prices and rent rise, as well as how long you stay living there. Cost Breakdowns of Money Spent Over The First 5 Years, compared with the Costs of Year 5. Buying Renting Spent in year 5 Cumulative spent years 1-5 Spent in year 5 Cumulative spent years 1-5 Purchase costs Down payment Closing costs $22,300 $8,920 Initial renting costs Rent deposit Broker's fee $1,500 Yearly costs Mortgage payment Principal Interest Yearly costs Rent Renter's insurance $11,613 $3,367 $8,246 $2,531 $1,299 $1,219 $1,219 $1,078 $87,725 $15,132 $42,593 $12,408 $6,245 $5,861 $5,861 $5,285 $20,259 $267 $95,564 $1,261 Property taxes Utilities Renovations Maintenance Homeowner's insurance Lost opportunity costs Down payment/initial costs Yearly costs $1,213 $2.662 $5,681 $6,520 Lost opportunity costs Rent deposit/initial costs Yearly costs $58 $2,726 $273 $6,607 Leaving your rental Return of rent deposit Selling costs Closing costs Remaining principal Tax (if any) on profit $14,063 $182,568 -$1,500 Proceeds from home sale -$234,375 Year 6 totals $22,834 $102,060 Year 6 totals $23,311 $103,706 Year-by-year analysis Year 1 If you stay in your home for 1 year, renting is better. It will cost you $18,674 less than buying, an average savings of $18,674 each year. Year 2 If you stay in your home for 2 years, renting is better. It will cost you $14,502 less than buying, an average savings of $7,251 each year. Year 3 If you stay in your home for 3 years, renting is better. It will cost you $9,749 less than buying, an average savings of $3,250 each year. Year 4 If you stay in your home for 4 years, renting is better. It will cost you $4,379 less than buying, an average savings of $1,095 each year. Year 5 If you stay in your home for 5 years, buying is better. It will cost you $1,646 less than renting, an average savings of $329 each year. Utilities Appliances The cost of heating a one-bedroom apartment can pale in comparison with the bills for an entire house. When you buy a house, a lot of the time, most major appliances will come with it, except perhaps the washer and dryer. Average annual utility costs: $4,000 Average initial appliance costs: $2,000 Furniture Yard care If you move from a one-bedroom apartment to, say, a three-bedroom house, you probably won't have the furniture to fill it. If you are used to living in an apartment with no yard, this can be the biggest home-owning expense shocker. At the least, you'll have to buy a mower to keep the grass trimmed. If you live in a snowy climate don't forget a shovel or snow Average initial furniture costs: $2,500 blower. Pest Control Average initial yard care costs: $1,250 This is one expense hopefully you won't have to deal with. Before you buy a house, be sure to get a termite inspection. Unfortunately the all clear doesn't mean you will be pest free forever. Average pest control costs: $800 Example Monthly rent Down payment where buying is better than renting after 5 years. $20,000 $1,500 10% $15,000 Home price Mortgage rate $223,000 5.50% $10,000 Annual home price change Buying is better $5,000 +1% $0 Annual rent increase -$5,000 +3% Renting is better -$10,000 Annual property taxes -%2415,000 1.35% 1 2 3 4 5 6 7 8 9 -$20,000 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 YEARS FROM NOW The True Cost of Sources: Kiplinger, NY Tìmes HOMEOWNFRSHIP 田田 田田 田田 田 田田 田 田田 Is it better to Buy or Rent? The decision depends on many factors, most important of which are how fast prices and rent rise, as well as how long you stay living there. Cost Breakdowns of Money Spent Over The First 5 Years, compared with the Costs of Year 5. Buying Renting Spent in year 5 Cumulative spent years 1-5 Spent in year 5 Cumulative spent years 1-5 Purchase costs Down payment Closing costs $22,300 $8,920 Initial renting costs Rent deposit Broker's fee $1,500 Yearly costs Mortgage payment Principal Interest Yearly costs Rent Renter's insurance $11,613 $3,367 $8,246 $2,531 $1,299 $1,219 $1,219 $1,078 $87,725 $15,132 $42,593 $12,408 $6,245 $5,861 $5,861 $5,285 $20,259 $267 $95,564 $1,261 Property taxes Utilities Renovations Maintenance Homeowner's insurance Lost opportunity costs Down payment/initial costs Yearly costs $1,213 $2.662 $5,681 $6,520 Lost opportunity costs Rent deposit/initial costs Yearly costs $58 $2,726 $273 $6,607 Leaving your rental Return of rent deposit Selling costs Closing costs Remaining principal Tax (if any) on profit $14,063 $182,568 -$1,500 Proceeds from home sale -$234,375 Year 6 totals $22,834 $102,060 Year 6 totals $23,311 $103,706 Year-by-year analysis Year 1 If you stay in your home for 1 year, renting is better. It will cost you $18,674 less than buying, an average savings of $18,674 each year. Year 2 If you stay in your home for 2 years, renting is better. It will cost you $14,502 less than buying, an average savings of $7,251 each year. Year 3 If you stay in your home for 3 years, renting is better. It will cost you $9,749 less than buying, an average savings of $3,250 each year. Year 4 If you stay in your home for 4 years, renting is better. It will cost you $4,379 less than buying, an average savings of $1,095 each year. Year 5 If you stay in your home for 5 years, buying is better. It will cost you $1,646 less than renting, an average savings of $329 each year. Utilities Appliances The cost of heating a one-bedroom apartment can pale in comparison with the bills for an entire house. When you buy a house, a lot of the time, most major appliances will come with it, except perhaps the washer and dryer. Average annual utility costs: $4,000 Average initial appliance costs: $2,000 Furniture Yard care If you move from a one-bedroom apartment to, say, a three-bedroom house, you probably won't have the furniture to fill it. If you are used to living in an apartment with no yard, this can be the biggest home-owning expense shocker. At the least, you'll have to buy a mower to keep the grass trimmed. If you live in a snowy climate don't forget a shovel or snow Average initial furniture costs: $2,500 blower. Pest Control Average initial yard care costs: $1,250 This is one expense hopefully you won't have to deal with. Before you buy a house, be sure to get a termite inspection. Unfortunately the all clear doesn't mean you will be pest free forever. Average pest control costs: $800 Example Monthly rent Down payment where buying is better than renting after 5 years. $20,000 $1,500 10% $15,000 Home price Mortgage rate $223,000 5.50% $10,000 Annual home price change Buying is better $5,000 +1% $0 Annual rent increase -$5,000 +3% Renting is better -$10,000 Annual property taxes -%2415,000 1.35% 1 2 3 4 5 6 7 8 9 -$20,000 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 YEARS FROM NOW The True Cost of Sources: Kiplinger, NY Tìmes HOMEOWNFRSHIP 田田 田田 田田 田 田田 田 田田 Is it better to Buy or Rent? The decision depends on many factors, most important of which are how fast prices and rent rise, as well as how long you stay living there. Cost Breakdowns of Money Spent Over The First 5 Years, compared with the Costs of Year 5. Buying Renting Spent in year 5 Cumulative spent years 1-5 Spent in year 5 Cumulative spent years 1-5 Purchase costs Down payment Closing costs $22,300 $8,920 Initial renting costs Rent deposit Broker's fee $1,500 Yearly costs Mortgage payment Principal Interest Yearly costs Rent Renter's insurance $11,613 $3,367 $8,246 $2,531 $1,299 $1,219 $1,219 $1,078 $87,725 $15,132 $42,593 $12,408 $6,245 $5,861 $5,861 $5,285 $20,259 $267 $95,564 $1,261 Property taxes Utilities Renovations Maintenance Homeowner's insurance Lost opportunity costs Down payment/initial costs Yearly costs $1,213 $2.662 $5,681 $6,520 Lost opportunity costs Rent deposit/initial costs Yearly costs $58 $2,726 $273 $6,607 Leaving your rental Return of rent deposit Selling costs Closing costs Remaining principal Tax (if any) on profit $14,063 $182,568 -$1,500 Proceeds from home sale -$234,375 Year 6 totals $22,834 $102,060 Year 6 totals $23,311 $103,706 Year-by-year analysis Year 1 If you stay in your home for 1 year, renting is better. It will cost you $18,674 less than buying, an average savings of $18,674 each year. Year 2 If you stay in your home for 2 years, renting is better. It will cost you $14,502 less than buying, an average savings of $7,251 each year. Year 3 If you stay in your home for 3 years, renting is better. It will cost you $9,749 less than buying, an average savings of $3,250 each year. Year 4 If you stay in your home for 4 years, renting is better. It will cost you $4,379 less than buying, an average savings of $1,095 each year. Year 5 If you stay in your home for 5 years, buying is better. It will cost you $1,646 less than renting, an average savings of $329 each year. Utilities Appliances The cost of heating a one-bedroom apartment can pale in comparison with the bills for an entire house. When you buy a house, a lot of the time, most major appliances will come with it, except perhaps the washer and dryer. Average annual utility costs: $4,000 Average initial appliance costs: $2,000 Furniture Yard care If you move from a one-bedroom apartment to, say, a three-bedroom house, you probably won't have the furniture to fill it. If you are used to living in an apartment with no yard, this can be the biggest home-owning expense shocker. At the least, you'll have to buy a mower to keep the grass trimmed. If you live in a snowy climate don't forget a shovel or snow Average initial furniture costs: $2,500 blower. Pest Control Average initial yard care costs: $1,250 This is one expense hopefully you won't have to deal with. Before you buy a house, be sure to get a termite inspection. Unfortunately the all clear doesn't mean you will be pest free forever. Average pest control costs: $800 Example Monthly rent Down payment where buying is better than renting after 5 years. $20,000 $1,500 10% $15,000 Home price Mortgage rate $223,000 5.50% $10,000 Annual home price change Buying is better $5,000 +1% $0 Annual rent increase -$5,000 +3% Renting is better -$10,000 Annual property taxes -%2415,000 1.35% 1 2 3 4 5 6 7 8 9 -$20,000 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 YEARS FROM NOW The True Cost of Sources: Kiplinger, NY Tìmes HOMEOWNFRSHIP 田田 田田 田田 田 田田 田 田田 Is it better to Buy or Rent? The decision depends on many factors, most important of which are how fast prices and rent rise, as well as how long you stay living there. Cost Breakdowns of Money Spent Over The First 5 Years, compared with the Costs of Year 5. Buying Renting Spent in year 5 Cumulative spent years 1-5 Spent in year 5 Cumulative spent years 1-5 Purchase costs Down payment Closing costs $22,300 $8,920 Initial renting costs Rent deposit Broker's fee $1,500 Yearly costs Mortgage payment Principal Interest Yearly costs Rent Renter's insurance $11,613 $3,367 $8,246 $2,531 $1,299 $1,219 $1,219 $1,078 $87,725 $15,132 $42,593 $12,408 $6,245 $5,861 $5,861 $5,285 $20,259 $267 $95,564 $1,261 Property taxes Utilities Renovations Maintenance Homeowner's insurance Lost opportunity costs Down payment/initial costs Yearly costs $1,213 $2.662 $5,681 $6,520 Lost opportunity costs Rent deposit/initial costs Yearly costs $58 $2,726 $273 $6,607 Leaving your rental Return of rent deposit Selling costs Closing costs Remaining principal Tax (if any) on profit $14,063 $182,568 -$1,500 Proceeds from home sale -$234,375 Year 6 totals $22,834 $102,060 Year 6 totals $23,311 $103,706 Year-by-year analysis Year 1 If you stay in your home for 1 year, renting is better. It will cost you $18,674 less than buying, an average savings of $18,674 each year. Year 2 If you stay in your home for 2 years, renting is better. It will cost you $14,502 less than buying, an average savings of $7,251 each year. Year 3 If you stay in your home for 3 years, renting is better. It will cost you $9,749 less than buying, an average savings of $3,250 each year. Year 4 If you stay in your home for 4 years, renting is better. It will cost you $4,379 less than buying, an average savings of $1,095 each year. Year 5 If you stay in your home for 5 years, buying is better. It will cost you $1,646 less than renting, an average savings of $329 each year. Utilities Appliances The cost of heating a one-bedroom apartment can pale in comparison with the bills for an entire house. When you buy a house, a lot of the time, most major appliances will come with it, except perhaps the washer and dryer. Average annual utility costs: $4,000 Average initial appliance costs: $2,000 Furniture Yard care If you move from a one-bedroom apartment to, say, a three-bedroom house, you probably won't have the furniture to fill it. If you are used to living in an apartment with no yard, this can be the biggest home-owning expense shocker. At the least, you'll have to buy a mower to keep the grass trimmed. If you live in a snowy climate don't forget a shovel or snow Average initial furniture costs: $2,500 blower. Pest Control Average initial yard care costs: $1,250 This is one expense hopefully you won't have to deal with. Before you buy a house, be sure to get a termite inspection. Unfortunately the all clear doesn't mean you will be pest free forever. Average pest control costs: $800 Example Monthly rent Down payment where buying is better than renting after 5 years. $20,000 $1,500 10% $15,000 Home price Mortgage rate $223,000 5.50% $10,000 Annual home price change Buying is better $5,000 +1% $0 Annual rent increase -$5,000 +3% Renting is better -$10,000 Annual property taxes -%2415,000 1.35% 1 2 3 4 5 6 7 8 9 -$20,000 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 YEARS FROM NOW The True Cost of Sources: Kiplinger, NY Tìmes HOMEOWNFRSHIP 田田 田田 田田 田 田田 田 田田 Is it better to Buy or Rent? The decision depends on many factors, most important of which are how fast prices and rent rise, as well as how long you stay living there. Cost Breakdowns of Money Spent Over The First 5 Years, compared with the Costs of Year 5. Buying Renting Spent in year 5 Cumulative spent years 1-5 Spent in year 5 Cumulative spent years 1-5 Purchase costs Down payment Closing costs $22,300 $8,920 Initial renting costs Rent deposit Broker's fee $1,500 Yearly costs Mortgage payment Principal Interest Yearly costs Rent Renter's insurance $11,613 $3,367 $8,246 $2,531 $1,299 $1,219 $1,219 $1,078 $87,725 $15,132 $42,593 $12,408 $6,245 $5,861 $5,861 $5,285 $20,259 $267 $95,564 $1,261 Property taxes Utilities Renovations Maintenance Homeowner's insurance Lost opportunity costs Down payment/initial costs Yearly costs $1,213 $2.662 $5,681 $6,520 Lost opportunity costs Rent deposit/initial costs Yearly costs $58 $2,726 $273 $6,607 Leaving your rental Return of rent deposit Selling costs Closing costs Remaining principal Tax (if any) on profit $14,063 $182,568 -$1,500 Proceeds from home sale -$234,375 Year 6 totals $22,834 $102,060 Year 6 totals $23,311 $103,706 Year-by-year analysis Year 1 If you stay in your home for 1 year, renting is better. It will cost you $18,674 less than buying, an average savings of $18,674 each year. Year 2 If you stay in your home for 2 years, renting is better. It will cost you $14,502 less than buying, an average savings of $7,251 each year. Year 3 If you stay in your home for 3 years, renting is better. It will cost you $9,749 less than buying, an average savings of $3,250 each year. Year 4 If you stay in your home for 4 years, renting is better. It will cost you $4,379 less than buying, an average savings of $1,095 each year. Year 5 If you stay in your home for 5 years, buying is better. It will cost you $1,646 less than renting, an average savings of $329 each year. Utilities Appliances The cost of heating a one-bedroom apartment can pale in comparison with the bills for an entire house. When you buy a house, a lot of the time, most major appliances will come with it, except perhaps the washer and dryer. Average annual utility costs: $4,000 Average initial appliance costs: $2,000 Furniture Yard care If you move from a one-bedroom apartment to, say, a three-bedroom house, you probably won't have the furniture to fill it. If you are used to living in an apartment with no yard, this can be the biggest home-owning expense shocker. At the least, you'll have to buy a mower to keep the grass trimmed. If you live in a snowy climate don't forget a shovel or snow Average initial furniture costs: $2,500 blower. Pest Control Average initial yard care costs: $1,250 This is one expense hopefully you won't have to deal with. Before you buy a house, be sure to get a termite inspection. Unfortunately the all clear doesn't mean you will be pest free forever. Average pest control costs: $800 Example Monthly rent Down payment where buying is better than renting after 5 years. $20,000 $1,500 10% $15,000 Home price Mortgage rate $223,000 5.50% $10,000 Annual home price change Buying is better $5,000 +1% $0 Annual rent increase -$5,000 +3% Renting is better -$10,000 Annual property taxes -%2415,000 1.35% 1 2 3 4 5 6 7 8 9 -$20,000 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 YEARS FROM NOW The True Cost of Sources: Kiplinger, NY Tìmes HOMEOWNFRSHIP 田田 田田 田田 田 田田 田 田田 Is it better to Buy or Rent? The decision depends on many factors, most important of which are how fast prices and rent rise, as well as how long you stay living there. Cost Breakdowns of Money Spent Over The First 5 Years, compared with the Costs of Year 5. Buying Renting Spent in year 5 Cumulative spent years 1-5 Spent in year 5 Cumulative spent years 1-5 Purchase costs Down payment Closing costs $22,300 $8,920 Initial renting costs Rent deposit Broker's fee $1,500 Yearly costs Mortgage payment Principal Interest Yearly costs Rent Renter's insurance $11,613 $3,367 $8,246 $2,531 $1,299 $1,219 $1,219 $1,078 $87,725 $15,132 $42,593 $12,408 $6,245 $5,861 $5,861 $5,285 $20,259 $267 $95,564 $1,261 Property taxes Utilities Renovations Maintenance Homeowner's insurance Lost opportunity costs Down payment/initial costs Yearly costs $1,213 $2.662 $5,681 $6,520 Lost opportunity costs Rent deposit/initial costs Yearly costs $58 $2,726 $273 $6,607 Leaving your rental Return of rent deposit Selling costs Closing costs Remaining principal Tax (if any) on profit $14,063 $182,568 -$1,500 Proceeds from home sale -$234,375 Year 6 totals $22,834 $102,060 Year 6 totals $23,311 $103,706 Year-by-year analysis Year 1 If you stay in your home for 1 year, renting is better. It will cost you $18,674 less than buying, an average savings of $18,674 each year. Year 2 If you stay in your home for 2 years, renting is better. It will cost you $14,502 less than buying, an average savings of $7,251 each year. Year 3 If you stay in your home for 3 years, renting is better. It will cost you $9,749 less than buying, an average savings of $3,250 each year. Year 4 If you stay in your home for 4 years, renting is better. It will cost you $4,379 less than buying, an average savings of $1,095 each year. Year 5 If you stay in your home for 5 years, buying is better. It will cost you $1,646 less than renting, an average savings of $329 each year. Utilities Appliances The cost of heating a one-bedroom apartment can pale in comparison with the bills for an entire house. When you buy a house, a lot of the time, most major appliances will come with it, except perhaps the washer and dryer. Average annual utility costs: $4,000 Average initial appliance costs: $2,000 Furniture Yard care If you move from a one-bedroom apartment to, say, a three-bedroom house, you probably won't have the furniture to fill it. If you are used to living in an apartment with no yard, this can be the biggest home-owning expense shocker. At the least, you'll have to buy a mower to keep the grass trimmed. If you live in a snowy climate don't forget a shovel or snow Average initial furniture costs: $2,500 blower. Pest Control Average initial yard care costs: $1,250 This is one expense hopefully you won't have to deal with. Before you buy a house, be sure to get a termite inspection. Unfortunately the all clear doesn't mean you will be pest free forever. Average pest control costs: $800 Example Monthly rent Down payment where buying is better than renting after 5 years. $20,000 $1,500 10% $15,000 Home price Mortgage rate $223,000 5.50% $10,000 Annual home price change Buying is better $5,000 +1% $0 Annual rent increase -$5,000 +3% Renting is better -$10,000 Annual property taxes -%2415,000 1.35% 1 2 3 4 5 6 7 8 9 -$20,000 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 YEARS FROM NOW

The True Cost of Home Ownership

shared by Zoesvg on Sep 14
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Is it better to buy or rent? The decision depends on many factors, most important of which are how fast prices and rent rise, as well as how long you stay living there.

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