Rent or Buy?

Cumulative Costs of Renting and Buying


Deciding whether to rent or buy depends on how fast home prices and rents rise, and how long you plan to stay in your home. Factors in the equation are the difference in monthly rent versus monthly mortgage payment, home value appreciation, annual rent increases, the interest rate on your loan, your marginal tax rate,and the yield you might receive on savings. Consider the present value of each item. The one with the lower present value will be the better financial choice.