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Tom Lyons
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Rent versus own analysis - 2011-2012 |
Rent versus own your home analysis for 2012. This attached chart offers the best proof why owning your own home is the best way to accumulate wealth over the years. This includes owning your home in a market where there is little, or no, home appreciation.
By owning instead of renting, after 5 years you would have paid approx. $169,000 in rent (at a monthly rental of $2500.00) This money does not go back in your pocket, instead, it pays down the mortgage balance of the person from whom you are renting your home or apartment. If you had owned your own home over the past 5 years you would have paid down your own mortgage balance a total of approx. $36,000
The difference in wealth that you did not put back in your own pocket is approx. $205,000.
Over 15 years the numbers are more staggering. You will pay approx. $658,000 in rent versus paying down the principal on your own mortgage to the total of $138,000 for a staggering difference of approx. $800,000.
This is why it is so important to own your own home. Over time you will become a millionaire. Plus, this analysis does not take into account the income tax savings of approx. $600 per month by owning your own home. Over 5 years the tax savings equals $36,000. Over 15 years the tax savings equals $108,000. Nor does this analysis take into consideration any home appreciation over the years. With even a modest home appreciation rate of, say, 3% the amount of wealth that you would accumulate is incredible.
Staggering numbers that prove how important it is to own your own home. Here is the link:
Thanks for reading!!
Tom |
