On an annual basis,
buying will cost $
than renting. This is based on
financial analysis, which differs from actual cash outlays. Overall, the
conclusion is:
Mortgage Rate
This is the fixed interest
rate on a mortgage with zero points.
Tax Bracket
This is your marginal
tax rate on Federal income State income tax. The 28% rate provided is the average for middle income earners.
Property Tax Rate
Input the property
tax rate. The number provided is slightly higher than the average tax rate in DeKalb County.
Expected Appreciation
This is a critical
assumption, and it requires a forecast. A reasonable guess is that prices will go up about
2 percent per year. However, local supply/demand conditions tend to be more important than
national averages in determining home prices. For this purpose, in consideration of local
market factors, an assumption of 3.5% annual appreciation is provided.
Rent, price
The rent is the
monthly rent you are now paying, an average rent payment of $800 is provided. The price provided
is the selling price on a quality Grainger-built townhome.
NOTE:
Do not include any dollar signs or commas. There are no edits in the program
to take them out.
Association fee (monthly)
You should factor in
any Homeowner Association Fees here.
Years
This is the number
of years you expect to remain in a rented or leased home. This is important, because whenever
you move you incur costs, including fees to real estate brokers. The longer
you plan to rent or lease a home, the more likely it is that buying will be more
advantageous financially.
Results
Next, you click
on "compute" and in the box you will see an evaluation of whether or not
you should rent or buy a home. We hope you find this calculator helpful.
