Should I Rent Or Buy A Home Calculator

by Pam on October 28, 2010

If you are debating on whether it is wiser for you to buy a home or to rent, there is a useful online calculator that can help you determine this as it does the number crunching for you.   Once you have launched the Is It Better To Buy Or Rent calculator, simply input the figures specific to your situation.  This calculator is also useful for folks who already own a home and would like to know how long they should be prepared to own it before it would make financial sense to buy another home, etc.  In our case, the calculator suggests that buying is better than renting after 4 years.

The calculator also has advanced settings options that allow you to customize the calculator to a greater extent.  It is best to input as much information as you can to ensure the most accurate results.  Although this tool is not perfect, and it does make some assumptions, it can be helpful in providing a bit of guidance in your big decision.

One thing to keep in mind, however, as Canadians, is that generally speaking our mortgage interest is not tax deductible, whereas in the U.S. it is.  This tool was designed specifically for Americans and it takes into account this benefit, so the results will not be exact.

Overall, though, this tool can be used along with other resources to help you determine what it would really cost you to buy versus rent a home.  It takes into account several factors including the annual home price change in your region and the annual increase or decrease in rent costs, as well as the closing costs, property taxes, etc.   It is easy to forget about all those extra costs, so this calculator brings to light many expenditures that may otherwise be overlooked.

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