Buying vs. Renting 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.