Owning Versus Renting
Attention renters! The shelter you rent may very
well be costing you more than the home you could own.
How much is that roof over your head really costing
you?
Owning Versus Renting Can Make A Significant
$$$$$ Difference
| Assumptions:
|
In this example, a married couple
decides to own a $130,000 home at 8.5 % interest.
They put 5% down payment. Their combined adjusted
gross income is $51,000 per year.
|
| |
Owning
a Home |
Renting |
The Difference |
| Monthly Expenditure |
$1200
PITI |
$1250
Rent |
$50/month |
| Months per year |
12 |
12 |
-- |
| Yearly expenditure |
$14,400 |
$15,000 |
Renters lose $15,000
in rent per year,
while homeowners build equity
and pay less per month.
|
| Adjusted Gross Income |
51,000 |
51,000 |
-- |
| 2 Individual Exemptions |
6,800 |
6,800 |
-- |
| Interest |
10,500 |
0 |
-- |
| Property Taxes |
2,800 |
0 |
-- |
Deductions
Medical & Charities |
1,000
Standard |
10,700
Standard |
Renters lose deductions. |
| Net Taxable Income |
29,900 |
33,500 |
-- |
| Marginal Tax Rate(s) |
15% |
15% |
-- |
| Income Tax Owed |
3706 |
4246 |
Homeowners pay $540
less per year in taxes. |
|
