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Buy vs Rent: Which Option Works Best For You?

Categories: Atlanta, Nashville, Raleigh | Posted: January 5, 2017

Happy New Year! As we move into the year, now is the perfect time to think about buying a home. If you are not sure whether to buy or rent, consider the information below which shows the amount of rent you might pay over the course of 30 years and the economic disadvantages it has when compared to buying.

RENT    5 YEARS    10 YEARS    15 YEARS    20 YEARS    25 YEARS    30 YEARS
$1,000.00    $60,000.00    $120,000.00    $180,000.00    $240,000.00    $300,000.00    $360,000.00
$1,200.00    $72,000.00    $144,000.00    $216,000.00    $288,000.00    $360,000.00    $432,000.00
$1,400.00    $84,000.00    $168,000.00    $252,000.00    $336,000.00    $420,000.00    $504,000.00
$1,600.00    $96,000.00    $192,000.00    $288,000.00    $384,000.00    $480,000.00    $576,000.00
$1,800.00    $108,000.00    $216,000.00    $324,000.00    $432,000.00    $540,000.00    $648,000.00
$2,000.00    $120,000.00    $240,000.00    $360,000.00    $480,000.00    $600,000.00    $720,000.00
$2,200.00    $132,000.00    $264,000.00    $396,000.00    $528,000.00    $660,000.00    $792,000.00
$2,400.00    $144,000.00    $288,000.00    $432,000.00    $576,000.00    $720,000.00    $864,000.00
$2,600.00    $156,000.00    $312,000.00    $468,000.00    $624,000.00    $780,000.00    $936,000.00
$2,800.00    $168,000.00    $336,000.00    $504,000.00    $672,000.00    $840,000.00    $1,008,000.00
$3,000.00    $180,000.00    $360,000.00    $540,000.00    $720,000.00    $900,000.00    $1,080,000.00

RENT:
o    No interest payment deductions
o    Rental amount may increase at any time
o    Landlord approval needed for any changes
o    No capitalization; your money disappears forever
o    Rental is temporary and is often subject to 30 days’ notice

BUY:
o    Excellent deductions for your mortgage interest paid*
o    Mortgage payments could be fixed
o    Decorate and make changes, without prior approval
o    The value of your property will probably increase in time
o    Your house will become a home, not a temporary living situation; you are not at the mercy of a landlord

Equal Housing and Licensed Mortgage Lender NMLS#152859, Haynes NMLS# #209636, State Lic #GA 32048. Office 1805 Old Alabama Road, Suite 315 Roswell, GA 30076, Georgia Residential Mortgage Licensee #33248. *Please consult a tax advisor for information related to specific tax benefits or consequences.

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