Renting Vs Buying

“If you rent, you’re throwing away your money!”

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...Its just common logic that dictates buying is better. After all, you’re building equity, instead of wasting your money, right?

Of course many factors can and do play a factor in the result of this decision:

• Location

• State of the economy

• Prestige

• Interest rates

• Age of property

• Quality

• Property taxes...

  But for curiosity’s sake, I did some research of my own, and ended up finding an excellent Internet based tool, (http://www.canadamortgage.com/calculators/rentvsown.cgi) to help shed some light on this age old issue:

  This tool was really quick and easy to use, and it outlines the cost benefits of renting VS buying. For example:

  Criteria I used:

  • Buying
  o Purchase price -­‐ $300,000
  o Down payment -­‐ $30,000
  o Interest rate – 4.05%
  o Term – 3yrs
  o Amortization – 30yrs
  o Salesfee–5%
  o Taxes-­‐$300/month
  o Maintenance costs – $200/month

  • Renting