Have you ever wondered is it better to rent or buy? The chart below shows you the difference between renting and owning.

 Rent vs. Buy Rent Info Rent Buy Monthly Rent \$900.00 Total Maintenance \$0.00 \$4,500.00 Annual Rent Increase \$2.000 Total Payments \$56,203.63 \$68,807.19 Property Information Average Monthly Payment \$936.73 \$1,146.79 Home Value \$225,000.00 Monthly Rent Savings \$210.06 Annual Maintenance \$900.00 Total Rent Savings \$12,603.55 Annual Appreciation 4.000 % House Appreciation Value \$273,746.90 Years Before Sell 5 Years Proceeds Minus Costs \$260,059.56 Selling Cost 5.000 % Loan Balance \$200,825.40 Loan Information Equity Appreciation \$59,234.16 Amount \$213,750.00 Home Purchase Benefits \$46,630.60 Interest Rate 5.000 % Length 35 Years Payment Schedule Yr Interests Principal Applied Balance 1 10,525.33 2,336.11 211,413.89 2 10,407.06 2,454.37 208,959.52 3 10,282.81 2,578.63 206,380.89 4 10,152.27 2,709.17 203,671.72 5 10,015.12 2,846.32 200,825.40 Yr Interests Principal Applied Balance 51,382.59 12,924.60 200,825.40

Is it financially better to buy a home or to rent? The answer to this question depends upon how much the home costs, how much you are paying for rent, and how much you will have to pay each year in order to maintain your home.

If you were to pay \$900.00 per month, for example, and the average rental payment increase was 2.000%, you would pay \$56,203.63 in a 5 year period toward rent. If you purchased a home and borrowed \$213,750.00 with a 5.000% interest rate, and you paid \$900.00 every year toward its maintenance, you would pay \$68,807.19 in a 5 year period toward mortgage payments.

When you consider the appreciation of your home, you will actually SAVE money by purchasing a home. If your home shows an annual appreciation of 4.000% and your selling cost is 5.000%, your house appreciation value will be \$273,746.90. As a result, your total home purchase benefit will amount to \$46,630.60.

Hope you find this information useful.

Constantine Isslamow

Broker/Manager