Buying vs Renting

The below graphs show the cost of renting vs owning. 

The graphic above shows the comparison of renting for $2000/month vs buying a $350,000 home.  The net monthly payment takes into account the tax benefits* and principal paid. 

In this example, you’ll notice that although it would cost an extra $90/month when purchasing a home, the net monthly savings that are realized when buying a home are $440/month.  The really jaw dropping number is what happens in this scenario over time.  Due to the appreciation of the home and paying down principal, the homeowner now has an extra $626,642 in Net worth after 15 years. 

Real estate prices may be higher than they were 18 months ago, but I still believe the best way to build wealth is still through buying real estate and it makes more sense than ever as rents have increased by 30% in Florida this year. 

*Used $24,000 standard deduction for married couples.  If able to itemize, tax savings will even be even greater through purchasing. 

**Used 6% annual appreciation rate
**Used 3% annual rent increase

Credit to David Davis for help in putting this together.

If you’re looking to increase your net worth by buying a home, contact me today, (727) 410-8599.
Want to get to know me a little better? Read some more client stories at https://www.kevinfreel.com/blog.