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Renting
Renting Assumptions
Buying
Buying Assumptions
The return on investment of your purchase will be in
5 years
After 5 years, buying represents a benefit of $ 2,617
The net costs are:
For Buy: Total costs – net
property
value.
For Rent: Total costs – net investment value.
Total costs are the sum of the amounts invested, expenses/rent and in the case of buying, cost of sale. Equity, in the case of buying, represents the net property value, and in the case of renting, the value of the investment.
| Buy | Rent | |
|---|---|---|
| Amount invested | $ 199,552 | $ 40,000 |
| Total expenses/rent | $ 72,179 | $ 81,476 |
| Selling costs | $ 10,510 | — |
| Total cost | $ 282,241 | $ 121,476 |
| Property value | $ 210,202 | — |
| Mortgage balance | $ 447 | — |
| Net property value | $ 209,754 | — |
| Investments | — | $ 40,000 |
| Investment income | — | $ 6,371 |
| Total value of investments | — | $ 46,371 |
| Net costs | $ 72,487 | $ 75,105 |