The power of purchase

The Power of Purchase Renting vs. Buying

How do you know if it is better to rent or to purchase a home? ,[object Object],[object Object],[object Object],[object Object],[object Object]

People buy a home for some of the following reasons ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

People decide against renting for some of these reasons ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

How much lost opportunity? Consider this scenario ,[object Object],By buying instead of renting, this individual saves: ~$16,680/yr Rent Buy Monthly payment: $1,800/mo Initial outlay: ~$3,600 (Security Deposit/1 mo rent & 1 mo security deposit ) ,[object Object],[object Object],[object Object]

Proof Bottom Line: Consideration Impact Effective Monthly Payment Monthly payment ,[object Object],[object Object],[object Object],[object Object],[object Object],$1,950/mo Tax savings on interest paid $270/mo (25% tax bracket) $1,950 - $270 = $1,680 Monthly mortgage payments towards principal $345/mo $1,680 - $345 = $1,335 5% appreciation/year* $1,150/mo (280,000*5%)/12 $1,335 - $1,150 = $185 Feels like $185/mo Renting $1,800/mo Buying (after considerations): $185/mo

Historic Northern VA annual appreciation ,[object Object]

Resources ,[object Object],[object Object],[object Object],[object Object],Source: www.nytimes.com/interactive/business/buy-rent-calculator.html

Programs ,[object Object],[object Object],[object Object],[object Object]

The power of purchase

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