Renting can be more Costly than Owning a Home

Especially in areas where rising rents are the norm.
As part of this discussion, the buyers’ assumptions that property taxes might disrupt their budget will need to be addressed. Agents might explain that while it’s true that taxes may rise, there also is a strong probability that rent will increase every year.

However, a mortgage payment won’t. For example, renters who pay $2,000 a month could get a $300,000 mortgage for 30 years at a 4 percent fixed interest rate. The monthly interest rate and principal payment would be $1,432.00. Even with insurance at $120 a month, renters would still have room for $448 a month in taxes.

If yearly taxes are $5,300 or less each year, the monthly payment for a home, which builds equity, and a rented home that does not, would be the same. Talk about Equity is understood by renters in a general sense and was cited by 45 percent of the TD Bank Renter Survey respondents as a reason to buy a home.