Let’s compare renting versus buying.
Let’s look at the specifics. If you rent, let’s assume you’re paying $1,500 per month, that equals $90,000 in five years ($1500 x 12 months x 5 years)
If you bought a home, let’s assume you buy a $100,000 home and put $5,000 down payment and take out a loan for $95,000 at 5% over 30 years. We’re also adding $4,800 per year for property taxes and another $4,800 per year for home repairs and $600 per year for property insurance.
Realistically, your numbers will vary, but looking at this scenario, you would be over $16,100 AHEAD if you purchase a home now than if you rented over the next five years AND your monthly payment should be under $1,000 per month for principal, interest, taxes and insurance.
ONLY you can decide what’s best for you, but buying a house in 5 years will allow you to get a $16,100 car for free, or trip or boat or ??? (if you plan correctly and save the money you’re not spending on the rental.)
This data is for informational purposes only and accuracy of the figures hereinafter set forth is not guaranteed. The actual costs with respect to each transaction will vary depending upon the circumstances.