The Real Cost of Renting
Experts agree that it makes sense to buy your home rather than rent it.
Consider the Potential Tax Deductions
Unlike money spent on rent, the mortgage interest and property taxes you pay are both deductible on your federal income-tax return.
This is especially true when mortgage interest rates are low. Mortgage interest rates are deductible up to a $100,000 annual limit.
Think about the home you could have purchased using that money. Not to mention the potential annual tax deduction for mortgage interest paid!
| $600/ month |
$700/ month |
$800/ month |
$900/ month |
$1,000/ month |
$1,200/ month |
$1,400/ month |
$1,600/ month |
|
|---|---|---|---|---|---|---|---|---|
| This year | $7,200 | $8,400 | $9,600 | $10,800 | $12,000 | $14,400 | $16,800 | $19,200 |
| Next year | $7,632 | $8,904 | $10,176 | $11,448 | $12,720 | $15,264 | $17,808 | $20,352 |
| 3rd year | $8,090 | $9,438 | $10,787 | $12,135 | $13,483 | $16,180 | $18,876 | $21,573 |
| 4th year | $8,575 | $10,005 | $11,434 | $12,863 | $14,292 | $17,151 | $20,009 | $22,868 |
| 5th year | $9,090 | $10,605 | $12,120 | $13,635 | $15,150 | $18,180 | $21,210 | $24,240 |
| 6th year | $9,635 | $11,241 | $12,847 | $14,453 | $16,059 | $19,270 | $22,482 | $25,694 |
| 7th year | $10,213 | $11,916 | $13,618 | $15,320 | $17,022 | $20,427 | $23,831 | $27,236 |
| 8th year | $10,826 | $12,631 | $14,435 | $16,239 | $18,044 | $21,652 | $25,261 | $28,870 |
| 9th year | $11,476 | $13,389 | $15,301 | $17,214 | $19,126 | $22,951 | $26,777 | $30,602 |
| 10th year | $12,164 | $14,192 | $16,219 | $18,246 | $20,274 | $24,328 | $28,383 | $32,438 |
| TOTAL | $94,901 | $110,721 | $126,537 | $142,353 | $158,170 | $189,803 | $221,437 | $253,073 |