Renting vs. Owning: how to add it up

Dated: October 9 2021

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I’m holding an open house at an entry-level condo this weekend, so I polished up one of my older fact sheets to share with first-time buyers. It’s a series of spreadsheets you can use to discover some eye-opening facts. For example, if you’re paying $1,500 a month in rent over a period of five years, you’ll have spent $90,000 with nothing to show for it. At the current FHA rate of about 2.75%, that $1,500 could pay principal and interest on a $350,000 mortgage. If you bought a condo for $350,000 and held it for five years during an appreciation rate of 5%, the condo would be worth about $446,700, generating wealth of $96,700. 

The choice is up to each person or each family: give up your money in exchange for shelter or invest in property that will shelter you and also build your financial future.

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DAVID DUNLAP

As a residential real estate executive with an extensive background in corporate marketing, I am able to apply unusually strong skills in marketing communications, e-marketing, strategic planning and ....

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