Should I Rent or Buy?

Obviously, this is a question that only you can answer and it will depend on whether you have long-term or short-term plans to stay in a specific area but there are tax advantages that you gain through homeownership.

Most renters have enough income to buy a home, but they simply don't know it. For various rent levels, the chart below shows the home price the renter could afford without paying more than their current rent, after tax deductions are figured in. The chart assumes a 10% downpayment and average interest rate and debt ratios. Each person will be a little bit different depending on their downpayment and interest rate but this should give you a general idea of when it may make sense to buy as opposed to rent.

• Rent Purchase Price Mortgage Payment Tax Savings
• $800 $168,000 $1,110 $310
• $1,000 $210,000 $1,390 $390
• $1,200 $255,000 $1,670 $470
• $1,400 $295,000 $1,950 $550
• $1,600 $335,000 $2,200 $600
• $1,800 $375,000 $2,500 $700
• $2,000 $420,000 $2,750 $750

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