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: