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DO THE MATH!
Many potential potential owners don't see
the breakdown of buying a lot, they just see
the big number. If you do the math you will
find that it is actually less expensive to
be an owner than renting your lot. We'll
show you why:
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Assumption -
$25,000 site with 20% ($5000) down = $20,000
loan @ 7.5% interest over 20 years.
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1st Year |
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Buy |
|
Rent |
|
$161.12 |
Monthly
Payment |
$162.50 |
|
$1935.00 |
Annually |
$1950.00 |
|
$1488.00 |
Interest |
---------- |
|
$417.00 |
Tax Savings |
---------- |
|
$1518.00 |
Net Payment |
$1950.00 |
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5th Year |
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|
|
Buy |
|
Rent |
|
$9675.00 |
Total Payments |
$10774.00 |
|
$7043.00 |
Total Interest |
---------- |
|
$1972.04 |
Total Tax
Savings |
---------- |
|
$7702.96 |
Net Payment |
$10774.00 |
|
FUTURE VALUE @
10% APPRECIATION:
(Assumes typical 5% yearly increase) |
$43,923.00 |
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