The Power Of Home Ownership Vs. Renting – Make 33% Annually On Your Downpayment!

The Power of Home Ownership Vs. Renting

Click Link below to read full article: http://chicago.curbed.com/archives/2015/01/02/chicagoans-spent-over-14-billion-on-rent-in-2014.php

Wow! What a Stat!  $14 Billion!

Well Here Is Even A More Impressive Stat!

If you purchase a property, you will make 33% on average on your down payment / investment annually in opposed to renting!  This includes monthly savings vs. renting, tax savings, principal pay down, and modest 3% appreciation.

The main assumptions are that the market rent for a $425K 2 bed 2 bath w/ Garage condo is $2600/mo. Then assume 20% down (higher returns actually are achieved for putting less down), a 3.5% interest rate, 28% Incremental Tax Bracket, $250/mo assessments, $500/mo taxes, and 3% annual appreciation.  Every situation is different but this is a very typical, realistic, and conservative set of assumptions.

The spreadsheet below is a little small, So click link below for easier to read version:

http://asknagel.com/wp-content/uploads/2015/02/The-Power-Of-Home-Ownership.pdf 

excel graph

 

 

 

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