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  • Purchase or Rent Analysis: Inputs Present Worth Analysis

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    heissenriyadhovic
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    This document contains inputs and calculations for a purchase or rent analysis. It compares the costs of renting a home for 5 years versus purchasing the same home. The inputs include the length of ownership, interest rates, purchase price, down payment, monthly costs for both options. The calculations determine the present worth and total costs for both renting and purchasing over the 5 year period. It concludes that purchasing the home has a present worth advantage over renting.

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    F11-6

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    This document contains inputs and calculations for a purchase or rent analysis. It compares the costs of renting a home for 5 years versus purchasing the same home. The inputs include the length of ownership, interest rates, purchase price, down payment, monthly costs for both options. The calculations determine the present worth and total costs for both renting and purchasing over the 5 year period. It concludes that purchasing the home has a present worth advantage over renting.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xls, pdf, or txt
    17 views1 page

    Purchase or Rent Analysis: Inputs Present Worth Analysis

    Uploaded by

    heissenriyadhovic
    This document contains inputs and calculations for a purchase or rent analysis. It compares the costs of renting a home for 5 years versus purchasing the same home. The inputs include the length of ownership, interest rates, purchase price, down payment, monthly costs for both options. The calculations determine the present worth and total costs for both renting and purchasing over the 5 year period. It concludes that purchasing the home has a present worth advantage over renting.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xls, pdf, or txt
    of 1

    A B 1 Purchase or Rent Analysis 2 3 Inputs 4 Length of ownership/renting (years) 5 Personal interest rate (percent) 6 7 Renting 8 Deposit (returned at departure)

    9 Monthly payments (first year) 10 Monthly rent change each year 11 Renters insurance (monthly) 12 13 14 Purchase 15 Application/closing fees 16 Purchase price 17 Down payment percentage 18 Loan interest rate (percent) 19 Loan length (years) 20 Monthly insurance and tax 21 Monthly maintenance 22 Future selling price 23 Sales commission/fees (percent) 24 25 Calculations 26 Monthly mortgage payment 27 Mortgage balance at time of sale

    5 10.0%

    Present Worth Analysis Note: cash inflows are negative values; cash outflows are positive values

    $1,200 $1,200 $25 $35

    Renting Deposit Monthly payment (base) Monthly rent change each year Renters insurance Renting total cost Purchase Application/closing fees Monthly mortgage payments Down payment

    Present Worth $470.65 $56,478.44 $2,058.54 $1,647.29 $60,654.92 Present Worth $2,000.00 $37,575.25 $30,000.00

    $2,000 $150,000 20.0% 7.0% 30 $200 $50 $160,000 7.0%

    Monthly insurance and tax Monthly maintenance Equity in house Sales commission/fees Owning total cost Present worth advantage: Purchase Home

    $9,413.07 $2,353.27 ($28,591.65) $6,807.23 $59,557.18

    $798.36 $112,957.91

    $1,097.75

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