Comparing Renting Vs. Buying
Specs:
- Address: 251 West 123rd Street
- Asking price: $1,195,000
- Building ownership: Condo
- 3 Bedroom, 2 Bathroom
- RET+CC: $475/month
Breakdown:
With a 20% down payment and a 30-year fixed mortgage with a 4.5% interest rate, your total monthly out of pocket expenses on this apartment would be $4,769/month. After tax deductions, however, this payment would shrink to $3,653. Since you are paying the principal towards your own equity, it can be excluded as well from the amount “wasted”, leaving you with a payment of just $2,149. Compare this to renting this apartment at $5,000–all of which you would never get back.
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