We’ve all heard it from our parents and our friends … “You’re throwing away your money when you rent” or “Pay your mortgage instead of someone else’s”
So, how much money are you throwing away?
Let’s say you are looking to rent a 1 bedroom condo about 550 sqft in Liberty Village.
This on average will be about $300,000. Let’s assume you can get a 2.6% interestrate and the amortization is 25 years. It’s probably safe to say that there will be an increase of 4% per year. This is a very conservative number as it’s 7%+ for condos this year. That would mean after paying down your mortgage and taking into consideration the increase in value, if you sell, you will have $125,774 in equity! Talk about instance easy saving!
The equivalent condo will lease for on average $1,500. After 5 years you would have paid $90,000! That means there is a $215,774 difference!!!
How about if you wanted a 2 bedroom condo? Your mortgage, property taxes and maintenance based on a $435,000 purchase price will be $2,521 per month TOTAL carrying cost. To rent the equivalent condo will cost you $2,300. The total equity that you would have built after 5 years will be $181,727!! Try saving that in 5 years! The amount you would have thrown away in rent would have been $138,000. That’s a $319,727 difference!!
This is only for 5 years! Imagine you rented for the rest of your life?
Call us today to see how we can help you not throw money away each month!