This silverlight-based tool (simillar to flash, but from microsoft..your browser might have it already or prompts for it if not) attempts to bring clarity to your decision making in terms of home buying. It Allows you to key-in basic data about mortgage and gives you the following:
- Returns that you could expect on your money going towards home every year versus renting out.
- Wealth that would be accumulated by you in comparison to renting out over the entire time-horizon.
- Simple graphs to let you visualize the impact on wealth as a result of a broader house-price-appreciation and holding period range (ex: 10-40% price-upside over the next 5-10yrs).
- A better answer to this question: “Am i better off renting a house?”, each and every time you have a house in your mind.
Assumptions:
It doesn’t attempt to quantify the intangible non-financial benefits (Quality of life improvement,..).
Rent inflation, interest payment tax deduction, property taxes, hoa and insurance are considered in the analysis.
So, make your homebuying decision a well informed and prudent step from financial standpoint! Here’s the tool:
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