RENTING vs BUYING A HOME IN TUCSON, ARIZONA
Owning your own home can bring financial rewards as well as pride.
For many homeowners, the incentives for owning are financial. How many times have you heard renters say, “I’m tired of throwing my money out the window?” What home ownership means to you is a great short- or long-term investment for a number of reasons: scheduled savings, stable housing costs, increased value, and tax benefits.
Let’s review the financial advantages of owning vs. renting with an example.
If you were to buy a home for $200,000, put 20 percent down ($40,000) and plan on living there approximately 10 years, you will save $152,000 over that 10 year period.
This savings is based on the same basic assumptions:
- Annual property appreciation rate: 3%
- Annual rent increase: 4%
- Rate of return on investment: 5%
- Annual property tax rate: 1% of sales price
- Annual hazard insurance rate: .32% of sales price
- Annual cost of maintenance and repairs: 1% of sales price
- Rent on comparable home: $1,200 per month savings
Tags: rent vs buy, Tucson Home Ownership
