Buying Vs Renting
What is the difference between renting and buying?
Lets lay out the important factors and differences in Renting VS Buying, as well as the cost/return associated with each.
We will start with the important stuff! Dolla Bills y'all.
Renting a Home
Deposit- $1,200
Rent- $1,200
1 Year Cost- $15,600
Return- 0$
You might get back your deposit if you're lucky.
How many years have you been renting? 5?
$72,000.00
That's if the rent doesn't go up every year.
That's not a lot of this.
But probably more of this.
Buying a Home With First Time Buyer Program/0$ Down Program
Home Price- $160,000
Earnest money- $1,600
Option Money- $100
Inspections/appraisals- $700
Down Payment- $0 (In addition- if you have a great realtor who can get you
closing costs and concessions- you could get your earnest
money back at closing)
closing costs and concessions- you could get your earnest
money back at closing)
Payment- $1,200.00 (Starts 45-60 days after purchase, 10 months for the year)
Total Cost- $14,400
Equity Earned- $2,700 (this will go up every year as it is your principle payment)
Equity Gained - $4,800 (3% market trend)
Return total- $7,500
PLUS you can write off ALL your taxes when you file. For the purpose of this example we used 3520$ which is San Antonio City taxes of 2.2%.
So you earned $7,500 in equity in your home, and got a tax write off for $3,520.
$11,020 that could have been thrown away in another year in a rental.
A little crazy when you put it all out there like that right?! Plus you can move in whoever you want- no application fee. You can have dogs and cats with no pet deposits. you can paint your walls hot pink if you like. It's your home, your investment, and your equity. It stops becoming this bill you have to pay, and turns into your retirement, your down payment for the next bigger better home you'd like to buy. So you can sit back and watch it grow.
That would give you a whole lot more of these.
And you can stop doing this.
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