As interest rates have reached historic lows, many renters are considering the purchase of a home. Given the financial magnitude of this, it is not a decision to be taken lightly. While financial considerations are a key factor, there are a number of qualitative aspects of the decision that need to be considered as well.
For example, you may be better off renting if you want or need to flexibility to move in the near future. Or, you may want to avoid the cost and responsibility of ongoing maintenance associated with home ownership.
Conversely, buying a home represents an investment which will likely appreciate over time. It also offers some tax advantages that renting does not provide. A potential buyer needs to make sure, however, that the costs associated with this investment make sense from their financial perspective.
VisualCalc’s Rent vs. Buy Calculator helps potential home purchasers (or home sellers) compare the costs of owning versus renting a home. The calculator factors in things like the loan costs, property taxes, and maintenance expenses on the buy side, and an expected annual increase in rent on the rent side. The calculator also factors in the impact of taxes given the purchaser’s tax bracket.
