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There are many forces that come in to play when you make the decision to buy, rather than rent. It is not as simple as comparing a rent payment to a mortgage payment. You need to consider tax issues, insurance, interest, maintenance, appreciation, etc. The chart below is a simplified example of how homeownership can actually cost LESS than renting.

Rent Buy Loan Amount N/A $150,000 30 year mortgage at 6.5% Monthly Payment $850 $948 Yearly Payment $10,200 $11,376 First Year Income Tax Savings* (25% federal / 8% state tax bracket) ZERO -$3,696 Money Spent in One Year $10,200 $7,680

There are, however, more benefits that are not listed in this chart including appreciation, earned equity, the enjoyment of homeownership, the social benefits of homeownership and stable housing. According to the National Association of Realtors (NAR), homeownership and stable housing contribute to: Higher educational performance and better behavior of children Lower community crime rates More household participation in civic affairs Better household health * IRS CIRCULAR 230 NOTICE. Any advice expressed above as to tax matters was neither written or intended by AllQuest Real Estate® to be used and cannot be used by any taxpayer for the purpose of avoiding tax penalties that may be imposed under U.S. tax law. If any person uses or refers to any such tax advice in promoting, marketing or recommending a partnership or other entity, investment plan or arrangement to any taxpayer, then (i) the advice was written to support the promotion, marketing (by a person other than AllQuest Real Estate®) of that transaction or matter, and (ii) such taxpayers should seek advice based on the taxpayers particular circumstances from an independent tax advisor. Here are some nifty tools with charts and graphs so you can get a better idea for : Renting vs. Buying Tax Benefits of Homeownership