Discussion Post: The Buy Versus Rent Decision

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Home>Business & Finance homework help>Management homework help>Discussion Post: The Buy Versus Rent Decision

Sheet1

Home purchase model
Purchase price 600000
Downpayment 122000
Interest rate 4%
Principal amortization (years) 25
Property tax rate 1.25%
Annual maintainance 600
Housing association dues (annual) 2000
Annual insurance 1500
Assumed annual appreciation 3%
Assumed marginal income tax rate 30%
General inflation 2%
Monthly mortage payment 2509.81 Assuming interest compounds monthly
Cost of renting similar home 3000
Assumed rental price inflation 3%
Assumed annual (after tax) return on cash 6%
Month 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254
Buying scenario
Home Value 600,000 601,500 603,004 604,511 606,023 607,538 609,056 610,579 612,106 613,636 615,170 616,708 618,250 619,795 621,345 622,898 624,455 626,016 627,581 629,150 630,723 632,300 633,881 635,466 637,054 638,647 640,243 641,844 643,449 645,057 646,670 648,287 649,907 651,532 653,161 654,794 656,431 658,072 659,717 661,366 663,020 664,677 666,339 668,005 669,675 671,349 673,027 674,710 676,397 678,088 679,783 681,482 683,186 684,894 686,606 688,323 690,044 691,769 693,498 695,232 696,970 698,712 700,459 702,210 703,966 705,726 707,490 709,259 711,032 712,810 714,592 716,378 718,169 719,965 721,764 723,569 725,378 727,191 729,009 730,832 732,659 734,490 736,327 738,167 740,013 741,863 743,718 745,577 747,441 749,309 751,183 753,061 754,943 756,831 758,723 760,620 762,521 764,427 766,338 768,254 770,175 772,100 774,031 775,966 777,906 779,850 781,800 783,755 785,714 787,678 789,647 791,621 793,601 795,585 797,574 799,567 801,566 803,570 805,579 807,593 809,612 811,636 813,665 815,699 817,739 819,783 821,832 823,887 825,947 828,012 830,082 832,157 834,237 836,323 838,414 840,510 842,611 844,717 846,829 848,946 851,069 853,196 855,329 857,468 859,611 861,760 863,915 866,075 868,240 870,410 872,586 874,768 876,955 879,147 881,345 883,548 885,757 887,972 890,192 892,417 894,648 896,885 899,127 901,375 903,628 905,887 908,152 910,422 912,698 914,980 917,268 919,561 921,860 924,164 926,475 928,791 931,113 933,441 935,774 938,114 940,459 942,810 945,167 947,530 949,899 952,274 954,654 957,041 959,434 961,832 964,237 966,647 969,064 971,487 973,915 976,350 978,791 981,238 983,691 986,150 988,616 991,087 993,565 996,049 998,539 1,001,035 1,003,538 1,006,047 1,008,562 1,011,083 1,013,611 1,016,145 1,018,685 1,021,232 1,023,785 1,026,345 1,028,911 1,031,483 1,034,062 1,036,647 1,039,238 1,041,836 1,044,441 1,047,052 1,049,670 1,052,294 1,054,925 1,057,562 1,060,206 1,062,856 1,065,513 1,068,177 1,070,848 1,073,525 1,076,209 1,078,899 1,081,596 1,084,300 1,087,011 1,089,729 1,092,453 1,095,184 1,097,922 1,100,667 1,103,419 1,106,177 1,108,943 1,111,715 1,114,494 1,117,280 1,120,074 1,122,874 1,125,681 1,128,495 1,131,316
Debt 478,000 477,084 476,164 475,241 474,316 473,387 472,455 471,520 470,582 469,641 468,697 467,749 466,798 465,845 464,888 463,927 462,964 461,997 461,028 460,055 459,078 458,099 457,116 456,130 455,140 454,148 453,152 452,152 451,150 450,144 449,134 448,122 447,106 446,086 445,063 444,037 443,007 441,974 440,938 439,898 438,854 437,807 436,757 435,703 434,645 433,584 432,520 431,452 430,380 429,305 428,226 427,144 426,058 424,968 423,875 422,778 421,677 420,573 419,465 418,354 417,238 416,119 414,997 413,870 412,740 411,606 410,468 409,326 408,181 407,032 405,879 404,722 403,561 402,397 401,228 400,056 398,879 397,699 396,515 395,327 394,135 392,939 391,739 390,535 389,327 388,115 386,899 385,679 384,454 383,226 381,994 380,757 379,517 378,272 377,023 375,770 374,513 373,251 371,985 370,716 369,441 368,163 366,881 365,594 364,303 363,007 361,707 360,403 359,095 357,782 356,465 355,143 353,817 352,487 351,152 349,812 348,469 347,120 345,768 344,410 343,049 341,682 340,311 338,936 337,556 336,171 334,782 333,388 331,990 330,587 329,179 327,766 326,349 324,927 323,500 322,069 320,632 319,191 317,746 316,295 314,839 313,379 311,914 310,444 308,969 307,489 306,004 304,514 303,019 301,520 300,015 298,505 296,990 295,471 293,946 292,416 290,881 289,340 287,795 286,244 284,689 283,128 281,562 279,991 278,414 276,832 275,245 273,653 272,055 270,452 268,844 267,230 265,611 263,987 262,357 260,722 259,081 257,435 255,783 254,126 252,463 250,795 249,121 247,442 245,757 244,066 242,370 240,668 238,960 237,247 235,528 233,803 232,073 230,337 228,595 226,847 225,093 223,334 221,568 219,797 218,020 216,237 214,448 212,653 210,852 209,045 207,232 205,413 203,588 201,756 199,919 198,076 196,226 194,371 192,509 190,640 188,766 186,886 184,999 183,106 181,206 179,300 177,388 175,470 173,545 171,613 169,676 167,731 165,781 163,823 161,860 159,889 157,913 155,929 153,939 151,942 149,939 147,929 145,912 143,889 141,859 139,822 137,778 135,727 133,670 131,606 129,535 127,457 125,372 123,280 121,181 119,075 116,962 114,842 112,715
Equity in home 122,000 124,416 126,840 129,270 131,707 134,151 136,601 139,059 141,523 143,995 146,473 148,959 151,451 153,951 156,457 158,971 161,491 164,019 166,554 169,096 171,645 174,201 176,765 179,336 181,914 184,499 187,092 189,692 192,299 194,914 197,536 200,165 202,802 205,446 208,098 210,757 213,423 216,098 218,779 221,469 224,166 226,870 229,582 232,302 235,030 237,765 240,508 243,258 246,017 248,783 251,557 254,339 257,128 259,926 262,732 265,545 268,366 271,196 274,033 276,878 279,732 282,593 285,463 288,340 291,226 294,120 297,022 299,932 302,851 305,778 308,713 311,656 314,608 317,568 320,536 323,513 326,498 329,492 332,494 335,505 338,524 341,552 344,588 347,633 350,686 353,748 356,819 359,898 362,986 366,083 369,189 372,304 375,427 378,559 381,700 384,850 388,009 391,176 394,353 397,539 400,733 403,937 407,150 410,372 413,603 416,843 420,093 423,351 426,619 429,896 433,183 436,478 439,784 443,098 446,422 449,755 453,098 456,450 459,812 463,183 466,563 469,954 473,354 476,763 480,183 483,612 487,050 490,499 493,957 497,425 500,903 504,391 507,888 511,396 514,913 518,441 521,979 525,526 529,084 532,651 536,229 539,817 543,416 547,024 550,643 554,272 557,911 561,560 565,220 568,891 572,571 576,263 579,964 583,677 587,399 591,133 594,877 598,631 602,397 606,173 609,959 613,757 617,565 621,384 625,214 629,055 632,907 636,769 640,643 644,528 648,424 652,330 656,248 660,177 664,118 668,069 672,032 676,006 679,991 683,988 687,996 692,015 696,046 700,088 704,142 708,208 712,285 716,373 720,473 724,585 728,709 732,844 736,991 741,150 745,321 749,503 753,698 757,904 762,123 766,353 770,596 774,850 779,117 783,396 787,687 791,991 796,306 800,634 804,974 809,327 813,692 818,069 822,459 826,862 831,277 835,704 840,144 844,597 849,063 853,541 858,032 862,536 867,053 871,582 876,125 880,681 885,249 889,831 894,425 899,033 903,654 908,288 912,935 917,596 922,270 926,957 931,657 936,371 941,099 945,840 950,594 955,362 960,144 964,939 969,748 974,571 979,408 984,258 989,122 994,001 998,893 1,003,799 1,008,719 1,013,653 1,018,601
Interest on debt 1,593 1,590 1,587 1,584 1,581 1,578 1,575 1,572 1,569 1,565 1,562 1,559 1,556 1,553 1,550 1,546 1,543 1,540 1,537 1,534 1,530 1,527 1,524 1,520 1,517 1,514 1,511 1,507 1,504 1,500 1,497 1,494 1,490 1,487 1,484 1,480 1,477 1,473 1,470 1,466 1,463 1,459 1,456 1,452 1,449 1,445 1,442 1,438 1,435 1,431 1,427 1,424 1,420 1,417 1,413 1,409 1,406 1,402 1,398 1,395 1,391 1,387 1,383 1,380 1,376 1,372 1,368 1,364 1,361 1,357 1,353 1,349 1,345 1,341 1,337 1,334 1,330 1,326 1,322 1,318 1,314 1,310 1,306 1,302 1,298 1,294 1,290 1,286 1,282 1,277 1,273 1,269 1,265 1,261 1,257 1,253 1,248 1,244 1,240 1,236 1,231 1,227 1,223 1,219 1,214 1,210 1,206 1,201 1,197 1,193 1,188 1,184 1,179 1,175 1,171 1,166 1,162 1,157 1,153 1,148 1,143 1,139 1,134 1,130 1,125 1,121 1,116 1,111 1,107 1,102 1,097 1,093 1,088 1,083 1,078 1,074 1,069 1,064 1,059 1,054 1,049 1,045 1,040 1,035 1,030 1,025 1,020 1,015 1,010 1,005 1,000 995 990 985 980 975 970 964 959 954 949 944 939 933 928 923 917 912 907 902 896 891 885 880 875 869 864 858 853 847 842 836 830 825 819 814 808 802 797 791 785 779 774 768 762 756 750 744 739 733 727 721 715 709 703 697 691 685 679 673 666 660 654 648 642 635 629 623 617 610 604 598 591 585 578 572 566 559 553 546 540 533 526 520 513 506 500 493 486 480 473 466 459 452 446 439 432 425 418 411 404 397 390 383
Mortage payment 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510 2,510
Paid principal 916 920 923 926 929 932 935 938 941 944 947 951 954 957 960 963 967 970 973 976 980 983 986 989 993 996 999 1,003 1,006 1,009 1,013 1,016 1,019 1,023 1,026 1,030 1,033 1,037 1,040 1,043 1,047 1,050 1,054 1,057 1,061 1,065 1,068 1,072 1,075 1,079 1,082 1,086 1,090 1,093 1,097 1,101 1,104 1,108 1,112 1,115 1,119 1,123 1,126 1,130 1,134 1,138 1,142 1,145 1,149 1,153 1,157 1,161 1,165 1,168 1,172 1,176 1,180 1,184 1,188 1,192 1,196 1,200 1,204 1,208 1,212 1,216 1,220 1,224 1,228 1,232 1,237 1,241 1,245 1,249 1,253 1,257 1,261 1,266 1,270 1,274 1,278 1,283 1,287 1,291 1,295 1,300 1,304 1,308 1,313 1,317 1,322 1,326 1,330 1,335 1,339 1,344 1,348 1,353 1,357 1,362 1,366 1,371 1,375 1,380 1,385 1,389 1,394 1,399 1,403 1,408 1,413 1,417 1,422 1,427 1,431 1,436 1,441 1,446 1,451 1,455 1,460 1,465 1,470 1,475 1,480 1,485 1,490 1,495 1,500 1,505 1,510 1,515 1,520 1,525 1,530 1,535 1,540 1,545 1,550 1,556 1,561 1,566 1,571 1,577 1,582 1,587 1,592 1,598 1,603 1,608 1,614 1,619 1,624 1,630 1,635 1,641 1,646 1,652 1,657 1,663 1,668 1,674 1,679 1,685 1,691 1,696 1,702 1,708 1,713 1,719 1,725 1,730 1,736 1,742 1,748 1,754 1,760 1,765 1,771 1,777 1,783 1,789 1,795 1,801 1,807 1,813 1,819 1,825 1,831 1,837 1,843 1,850 1,856 1,862 1,868 1,874 1,881 1,887 1,893 1,899 1,906 1,912 1,919 1,925 1,931 1,938 1,944 1,951 1,957 1,964 1,970 1,977 1,983 1,990 1,997 2,003 2,010 2,017 2,023 2,030 2,037 2,044 2,051 2,057 2,064 2,071 2,078 2,085 2,092 2,099 2,106 2,113 2,120 2,127
Insurance payment 125 125 125 126 126 126 126 126 127 127 127 127 128 128 128 128 128 129 129 129 129 129 130 130 130 130 131 131 131 131 131 132 132 132 132 133 133 133 133 133 134 134 134 134 135 135 135 135 135 136 136 136 136 137 137 137 137 137 138 138 138 138 139 139 139 139 140 140 140 140 140 141 141 141 141 142 142 142 142 143 143 143 143 144 144 144 144 144 145 145 145 145 146 146 146 146 147 147 147 147 148 148 148 148 149 149 149 149 150 150 150 150 151 151 151 151 152 152 152 152 153 153 153 153 154 154 154 154 155 155 155 155 156 156 156 157 157 157 157 158 158 158 158 159 159 159 159 160 160 160 160 161 161 161 162 162 162 162 163 163 163 163 164 164 164 165 165 165 165 166 166 166 166 167 167 167 168 168 168 168 169 169 169 170 170 170 170 171 171 171 172 172 172 172 173 173 173 174 174 174 174 175 175 175 176 176 176 176 177 177 177 178 178 178 179 179 179 179 180 180 180 181 181 181 182 182 182 182 183 183 183 184 184 184 185 185 185 185 186 186 186 187 187 187 188 188 188 189 189 189 190 190 190 190
Housing association dues 167 167 167 168 168 168 168 169 169 169 169 170 170 170 171 171 171 171 172 172 172 173 173 173 173 174 174 174 175 175 175 175 176 176 176 177 177 177 178 178 178 178 179 179 179 180 180 180 181 181 181 181 182 182 182 183 183 183 184 184 184 184 185 185 185 186 186 186 187 187 187 188 188 188 189 189 189 189 190 190 190 191 191 191 192 192 192 193 193 193 194 194 194 195 195 195 196 196 196 197 197 197 198 198 198 199 199 199 200 200 200 201 201 201 202 202 202 203 203 203 204 204 204 205 205 205 206 206 206 207 207 207 208 208 208 209 209 209 210 210 210 211 211 211 212 212 213 213 213 214 214 214 215 215 215 216 216 216 217 217 218 218 218 219 219 219 220 220 220 221 221 222 222 222 223 223 223 224 224 225 225 225 226 226 226 227 227 228 228 228 229 229 229 230 230 231 231 231 232 232 233 233 233 234 234 234 235 235 236 236 236 237 237 238 238 238 239 239 240 240 240 241 241 242 242 242 243 243 244 244 244 245 245 246 246 246 247 247 248 248 249 249 249 250 250 251 251 251 252 252 253 253 254 254
Maintenance 50 50 50 50 50 50 51 51 51 51 51 51 51 51 51 51 51 51 52 52 52 52 52 52 52 52 52 52 52 52 53 53 53 53 53 53 53 53 53 53 53 54 54 54 54 54 54 54 54 54 54 54 55 55 55 55 55 55 55 55 55 55 55 56 56 56 56 56 56 56 56 56 56 56 57 57 57 57 57 57 57 57 57 57 58 58 58 58 58 58 58 58 58 58 58 59 59 59 59 59 59 59 59 59 59 60 60 60 60 60 60 60 60 60 60 61 61 61 61 61 61 61 61 61 61 62 62 62 62 62 62 62 62 62 63 63 63 63 63 63 63 63 63 63 64 64 64 64 64 64 64 64 64 65 65 65 65 65 65 65 65 65 65 66 66 66 66 66 66 66 66 66 67 67 67 67 67 67 67 67 67 68 68 68 68 68 68 68 68 68 69 69 69 69 69 69 69 69 70 70 70 70 70 70 70 70 70 71 71 71 71 71 71 71 71 72 72 72 72 72 72 72 72 72 73 73 73 73 73 73 73 73 74 74 74 74 74 74 74 74 75 75 75 75 75 75 75 75 76 76 76 76 76 76
Property tax 625 627 628 630 631 633 634 636 638 639 641 642 644 646 647 649 650 652 654 655 657 659 660 662 664 665 667 669 670 672 674 675 677 679 680 682 684 685 687 689 691 692 694 696 698 699 701 703 705 706 708 710 712 713 715 717 719 721 722 724 726 728 730 731 733 735 737 739 741 743 744 746 748 750 752 754 756 757 759 761 763 765 767 769 771 773 775 777 779 781 782 784 786 788 790 792 794 796 798 800 802 804 806 808 810 812 814 816 818 820 823 825 827 829 831 833 835 837 839 841 843 845 848 850 852 854 856 858 860 863 865 867 869 871 873 876 878 880 882 884 887 889 891 893 895 898 900 902 904 907 909 911 913 916 918 920 923 925 927 930 932 934 937 939 941 944 946 948 951 953 955 958 960 963 965 967 970 972 975 977 980 982 985 987 989 992 994 997 999 1,002 1,004 1,007 1,009 1,012 1,014 1,017 1,020 1,022 1,025 1,027 1,030 1,032 1,035 1,038 1,040 1,043 1,045 1,048 1,051 1,053 1,056 1,058 1,061 1,064 1,066 1,069 1,072 1,074 1,077 1,080 1,083 1,085 1,088 1,091 1,093 1,096 1,099 1,102 1,104 1,107 1,110 1,113 1,115 1,118 1,121 1,124 1,127 1,129 1,132 1,135 1,138 1,141 1,144 1,147 1,149 1,152 1,155 1,158 1,161 1,164 1,167 1,170 1,173 1,176
Income tax savings from interest deduction 665 665 665 664 664 663 663 662 662 661 661 660 660 660 659 659 658 658 657 657 656 656 655 655 654 654 653 653 652 652 651 651 650 650 649 649 648 648 647 647 646 646 645 644 644 643 643 642 642 641 641 640 640 639 638 638 637 637 636 636 635 634 634 633 633 632 632 631 630 630 629 629 628 627 627 626 626 625 624 624 623 622 622 621 621 620 619 619 618 617 617 616 615 615 614 613 613 612 611 611 610 609 609 608 607 607 606 605 605 604 603 603 602 601 600 600 599 598 598 597 596 595 595 594 593 592 592 591 590 589 589 588 587 586 586 585 584 583 582 582 581 580 579 578 578 577 576 575 574 574 573 572 571 570 569 569 568 567 566 565 564 563 563 562 561 560 559 558 557 556 555 555 554 553 552 551 550 549 548 547 546 545 544 544 543 542 541 540 539 538 537 536 535 534 533 532 531 530 529 528 527 526 525 524 523 522 521 520 519 518 517 516 515 514 512 511 510 509 508 507 506 505 504 503 502 500 499 498 497 496 495 494 493 491 490 489 488 487 486 484 483 482 481 480 478 477 476 475 474 472 471 470 469 467
Total cash outflow in buying scenario 2,811 2,814 2,816 2,819 2,821 2,824 2,827 2,829 2,832 2,834 2,837 2,840 2,842 2,845 2,848 2,850 2,853 2,856 2,858 2,861 2,864 2,867 2,869 2,872 2,875 2,878 2,880 2,883 2,886 2,889 2,891 2,894 2,897 2,900 2,903 2,905 2,908 2,911 2,914 2,917 2,920 2,922 2,925 2,928 2,931 2,934 2,937 2,940 2,943 2,946 2,949 2,952 2,954 2,957 2,960 2,963 2,966 2,969 2,972 2,975 2,978 2,981 2,984 2,987 2,990 2,994 2,997 3,000 3,003 3,006 3,009 3,012 3,015 3,018 3,021 3,024 3,028 3,031 3,034 3,037 3,040 3,043 3,047 3,050 3,053 3,056 3,059 3,063 3,066 3,069 3,072 3,076 3,079 3,082 3,086 3,089 3,092 3,096 3,099 3,102 3,106 3,109 3,112 3,116 3,119 3,122 3,126 3,129 3,133 3,136 3,139 3,143 3,146 3,150 3,153 3,157 3,160 3,164 3,167 3,171 3,174 3,178 3,181 3,185 3,189 3,192 3,196 3,199 3,203 3,207 3,210 3,214 3,217 3,221 3,225 3,228 3,232 3,236 3,239 3,243 3,247 3,251 3,254 3,258 3,262 3,266 3,269 3,273 3,277 3,281 3,285 3,289 3,292 3,296 3,300 3,304 3,308 3,312 3,316 3,320 3,323 3,327 3,331 3,335 3,339 3,343 3,347 3,351 3,355 3,359 3,363 3,367 3,371 3,375 3,380 3,384 3,388 3,392 3,396 3,400 3,404 3,408 3,413 3,417 3,421 3,425 3,429 3,433 3,438 3,442 3,446 3,450 3,455 3,459 3,463 3,468 3,472 3,476 3,481 3,485 3,489 3,494 3,498 3,503 3,507 3,511 3,516 3,520 3,525 3,529 3,534 3,538 3,543 3,547 3,552 3,556 3,561 3,565 3,570 3,575 3,579 3,584 3,588 3,593 3,598 3,602 3,607 3,612 3,617 3,621 3,626 3,631 3,636 3,640 3,645 3,650 3,655 3,660 3,664 3,669 3,674 3,679 3,684 3,689 3,694 3,699 3,704 3,708 3,713 3,718 3,723 3,728 3,733 3,739
Renting Scenario
Cashflow that could be spent on home-purchase/expesnes 2,811 2,814 2,816 2,819 2,821 2,824 2,827 2,829 2,832 2,834 2,837 2,840 2,842 2,845 2,848 2,850 2,853 2,856 2,858 2,861 2,864 2,867 2,869 2,872 2,875 2,878 2,880 2,883 2,886 2,889 2,891 2,894 2,897 2,900 2,903 2,905 2,908 2,911 2,914 2,917 2,920 2,922 2,925 2,928 2,931 2,934 2,937 2,940 2,943 2,946 2,949 2,952 2,954 2,957 2,960 2,963 2,966 2,969 2,972 2,975 2,978 2,981 2,984 2,987 2,990 2,994 2,997 3,000 3,003 3,006 3,009 3,012 3,015 3,018 3,021 3,024 3,028 3,031 3,034 3,037 3,040 3,043 3,047 3,050 3,053 3,056 3,059 3,063 3,066 3,069 3,072 3,076 3,079 3,082 3,086 3,089 3,092 3,096 3,099 3,102 3,106 3,109 3,112 3,116 3,119 3,122 3,126 3,129 3,133 3,136 3,139 3,143 3,146 3,150 3,153 3,157 3,160 3,164 3,167 3,171 3,174 3,178 3,181 3,185 3,189 3,192 3,196 3,199 3,203 3,207 3,210 3,214 3,217 3,221 3,225 3,228 3,232 3,236 3,239 3,243 3,247 3,251 3,254 3,258 3,262 3,266 3,269 3,273 3,277 3,281 3,285 3,289 3,292 3,296 3,300 3,304 3,308 3,312 3,316 3,320 3,323 3,327 3,331 3,335 3,339 3,343 3,347 3,351 3,355 3,359 3,363 3,367 3,371 3,375 3,380 3,384 3,388 3,392 3,396 3,400 3,404 3,408 3,413 3,417 3,421 3,425 3,429 3,433 3,438 3,442 3,446 3,450 3,455 3,459 3,463 3,468 3,472 3,476 3,481 3,485 3,489 3,494 3,498 3,503 3,507 3,511 3,516 3,520 3,525 3,529 3,534 3,538 3,543 3,547 3,552 3,556 3,561 3,565 3,570 3,575 3,579 3,584 3,588 3,593 3,598 3,602 3,607 3,612 3,617 3,621 3,626 3,631 3,636 3,640 3,645 3,650 3,655 3,660 3,664 3,669 3,674 3,679 3,684 3,689 3,694 3,699 3,704 3,708 3,713 3,718 3,723 3,728 3,733 3,739
Rent 3,000 3,008 3,015 3,023 3,030 3,038 3,045 3,053 3,061 3,068 3,076 3,084 3,091 3,099 3,107 3,114 3,122 3,130 3,138 3,146 3,154 3,162 3,169 3,177 3,185 3,193 3,201 3,209 3,217 3,225 3,233 3,241 3,250 3,258 3,266 3,274 3,282 3,290 3,299 3,307 3,315 3,323 3,332 3,340 3,348 3,357 3,365 3,374 3,382 3,390 3,399 3,407 3,416 3,424 3,433 3,442 3,450 3,459 3,467 3,476 3,485 3,494 3,502 3,511 3,520 3,529 3,537 3,546 3,555 3,564 3,573 3,582 3,591 3,600 3,609 3,618 3,627 3,636 3,645 3,654 3,663 3,672 3,682 3,691 3,700 3,709 3,719 3,728 3,737 3,747 3,756 3,765 3,775 3,784 3,794 3,803 3,813 3,822 3,832 3,841 3,851 3,861 3,870 3,880 3,890 3,899 3,909 3,919 3,929 3,938 3,948 3,958 3,968 3,978 3,988 3,998 4,008 4,018 4,028 4,038 4,048 4,058 4,068 4,078 4,089 4,099 4,109 4,119 4,130 4,140 4,150 4,161 4,171 4,182 4,192 4,203 4,213 4,224 4,234 4,245 4,255 4,266 4,277 4,287 4,298 4,309 4,320 4,330 4,341 4,352 4,363 4,374 4,385 4,396 4,407 4,418 4,429 4,440 4,451 4,462 4,473 4,484 4,496 4,507 4,518 4,529 4,541 4,552 4,563 4,575 4,586 4,598 4,609 4,621 4,632 4,644 4,656 4,667 4,679 4,691 4,702 4,714 4,726 4,738 4,749 4,761 4,773 4,785 4,797 4,809 4,821 4,833 4,845 4,857 4,870 4,882 4,894 4,906 4,918 4,931 4,943 4,955 4,968 4,980 4,993 5,005 5,018 5,030 5,043 5,055 5,068 5,081 5,093 5,106 5,119 5,132 5,145 5,157 5,170 5,183 5,196 5,209 5,222 5,235 5,248 5,261 5,275 5,288 5,301 5,314 5,328 5,341 5,354 5,368 5,381 5,394 5,408 5,422 5,435 5,449 5,462 5,476 5,490 5,503 5,517 5,531 5,545 5,559 5,572 5,586 5,600 5,614 5,628 5,642 5,657
Savings when renting 122,000 122,413 122,824 123,232 123,637 124,038 124,437 124,833 125,226 125,616 126,002 126,386 126,766 127,144 127,518 127,888 128,256 128,620 128,981 129,339 129,693 130,044 130,391 130,735 131,076 131,413 131,746 132,076 132,402 132,725 133,043 133,359 133,670 133,978 134,282 134,582 134,878 135,170 135,458 135,743 136,023 136,299 136,572 136,840 137,104 137,364 137,619 137,871 138,118 138,361 138,600 138,834 139,063 139,289 139,510 139,726 139,938 140,145 140,348 140,545 140,739 140,927 141,111 141,290 141,464 141,633 141,797 141,956 142,111 142,260 142,404 142,543 142,677 142,806 142,929 143,047 143,160 143,268 143,370 143,466 143,557 143,643 143,723 143,797 143,866 143,929 143,987 144,038 144,084 144,124 144,158 144,185 144,207 144,223 144,233 144,237 144,234 144,225 144,210 144,189 144,161 144,127 144,086 144,039 143,986 143,925 143,858 143,785 143,704 143,617 143,523 143,422 143,314 143,199 143,077 142,948 142,811 142,668 142,517 142,359 142,194 142,021 141,840 141,653 141,457 141,254 141,043 140,825 140,599 140,364 140,122 139,872 139,614 139,348 139,074 138,791 138,501 138,202 137,894 137,579 137,254 136,922 136,580 136,230 135,871 135,504 135,128 134,742 134,348 133,945 133,532 133,111 132,680 132,240 131,791 131,332 130,864 130,386 129,899 129,402 128,895 128,379 127,852 127,316 126,770 126,213 125,647 125,070 124,483 123,886 123,279 122,660 122,032 121,392 120,742 120,082 119,410 118,728 118,034 117,330 116,614 115,887 115,149 114,400 113,639 112,867 112,083 111,287 110,480 109,661 108,830 107,987 107,132 106,265 105,386 104,495 103,591 102,675 101,746 100,804 99,850 98,883 97,904 96,911 95,906 94,887 93,855 92,810 91,751 90,679 89,594 88,495 87,382 86,256 85,115 83,961 82,792 81,610 80,413 79,202 77,976 76,736 75,481 74,212 72,928 71,629 70,315 68,986 67,642 66,282 64,907 63,517 62,111 60,689 59,252 57,799 56,330 54,845 53,343 51,826 50,292 48,741 47,175 45,591 43,990 42,373 40,739 39,088 37,419 35,733 34,030 32,309 30,571 28,815 27,041
Home value after 10 years 809,612
Debt after 10 years 343,049
Home Equity after 10 years 466,563
Transaction costs of selling in year 10 48,577
Net cash if home sold in 10 years (assuming no capital gains) 417,987
Savings after 10 years if renting 142,194
Present value benefit of owning vs. renting for 10 years 226,246

Sheet2

Sheet3