Buy Rent Analysis
Autor: Rahul Tewari • November 15, 2016 • Coursework • 556 Words (3 Pages) • 750 Views
Buy Vs Rent
Assumptions: No Property tax deductions considered
No increase in Condo Fee, Property Taxes and Main Cost.
2% inflation in Rent is considered.
Scenario A Condo Price Unchanged Sell after 2 Years, 5 Years, 10 Years
2 Years | 5 Years | 10 Years | |||
Total Rent Paid | 73,397 | Total Rent Paid | 189,142 | Total Rent Paid | 398,159 |
FV of Investment | 129,792 | FV of Investment | 145,998 | FV of Investment | 177,629 |
Down Payment | 120,000 | Down Payment | 120,000 | Down Payment | 120,000 |
Total Mortgage Paid + Condo Fee + Property Tax + Maint | 90,782 | Total Mortgage Paid + Condo Fee + Property Tax + Maint | 226,955 | Total Mortgage Paid + Condo Fee + Property Tax + Maint | 453,910 |
Remaining Principal (28 yrs) | 481,930 | Remaining Principal (25 yrs) | 451,996 | Remaining Principal (20 yrs) | 393,480 |
Total Paid (Down Pmt, 2 years Paid, Remaining Principal) | 692,712 | Total Paid (Down Pmt, 5 years Mortgage, Remaining Principal) | 798,951 | Total Paid (Down Pmt, 10 years Mortgage, Remaining Principal) | 967,390 |
Money coming from Sale (Less realtor and closing cost) | 568,000 | Money coming from Sale | 568,000 | Money coming from Sale | 568,000 |
Cash In Hand (FV of Investment – Rent Paid) | 56395 | Cash In Hand (FV of Investment – Rent Paid) | -43,144 | Cash In Hand (FV of Investment – Rent Paid) | -220,520 |
Net money after sale | -124,712 | Net money after sale | -230,000 | Net money after sale | -399,390 |
Rent or Buy | Rent | Rent or Buy | Rent | Rent or Buy | Rent |
Scenario B Condo Price drops 10% over 2 Yrs, then increases back to Purchase price after 5 Yrs, Increases 10 % at end of 10 Years
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