Welcome to the WeberDavisRealEstate.com Blog

2017-05-03 18:46:38
Renting or Owning? Which costs more?

Check out these figures, which is better for you?


Even with numbers like these, some still say renting is better, but which is better for you?


“Investing in a home is riskier than renting.”

No risk, no reward. Besides, even studies conducted by the Federal Reserve show that owning can provide a net worth that is from several to hundreds of times higher than that of renters.


“Home values have ped in recent years.”

Which is one reason why ownership may now be less expensive than renting. As well, recent price trends in many areas have reversed, and values are once again on the rise.


“The tax deductions aren’t worth it.”

Some people benefit from claiming deductions for mortgage interest and real estate taxes. Others find a standard deduction more valuable. Even if you exclude the tax benefit, the real cost of owning can still be less than renting.


Equity for you or equity for your landlord?

With more or less equal payments, owning will always have an advantage in that you’re paying down principal and earning equity in your own home rather than the landlord’s.


Still renting and want to explore the path to ownership? Reach out, and we'll be happy to help.


Factors used: $200,000 purchase price, 20% down, $160,000 30 yr. fixed loan at 4%/4.25% APR. Principal & Interest payment = $763.86, taxes = $250/Mo. (1.5% of value), insurance = $50/Mo., and maintenance = $168/Mo. (1% of value). Tax deductibility at 28%. Tax savings, principal paid and appreciation averaged over a 5-year period. Always consult with your tax advisor for tax advice specific to your situation. This is not a Good Faith Estimate nor an offer to lend. Rates, prices, taxes, insurance, etc., are subject to change at any time. APR calculations are based on closing costs of 3% of the loan amount. Actual fees can be less. 



By: Matt Wright, Academy Mortgage

Blog Archive
2017-05-03 18:46:38
Renting or Owning? Which costs more?

2017-04-27 15:04:57
10 Things to Know about Mold

2017-04-20 10:23:25
Make your Lawn Green

2017-04-14 11:37:55
Home Inspections

2017-04-04 15:04:53
Hints for Loan Approval

2017-03-16 09:06:08
15 curb appeal tips to sell your home

2017-03-09 11:18:40
Real Estate Market going up to 7% in Davis / Weber

2017-03-09 10:41:47
Home inspection, the Peace of Mind!!

2017-03-04 12:37:45
FHA Rates

2017-02-23 14:20:10
Do LED Really Save money and Power?

2017-02-17 13:30:14
Buying vs. Renting

2017-02-07 19:37:02
Thaw Frozen Pipes

2017-02-03 09:24:44
5 Top Secrets to getting your house ready to sell

2017-02-02 14:00:11
Movin on Up

2017-01-31 21:55:30
Everything you need to Know about Home Warranties

2016-12-27 16:29:31
Buying a FSBO without an Agent

Comment on this Article

Your Name:
Your Email:
Verify:  Please enter the numbers shown to help eliminate spam.