Purchase vs Rent Comparison

CONDO Sale Price $298,000
Rental Expense $1,400
Interest Rate 5.5%

Scenarios Rent Purchase Purchase Purchase Purchase


Down Payment Percentage 0% 3% 5% 10%
Down Payment Amount - 8,940 14,900 29,800
Loan/Rent Payment* 1,400 1,366 1,325 1,298 1,229
Plus Property Tax** 260 260 260 260
Plus HOA Fees 220 220 220 220
Less Tax Savings*** (520) (507) (498) (476)
Net Monthly Cost 1,400 1,326 1,298 1,279 1,233

Net Monthly Savings 74 102 121 167

* Based on interest only loan
**Based on property tax rate of 1.045%
***Based on Federal and California tax savings; federal rate calculated on income between $30,800 and $68,500. California on income over $38,000.
Disclaimer: This comparison is only an example. Actual costs will vary from this example. Its applicability to your circumstances is not guaranteed. You should obtain personal advice from qualified professionals.