You Must Check Out This New Buy vs. Rent Calculator

Owner, Renter Green Road Sign Over Dramatic Clouds and Sky.New York Times has just published an excellent  buy versus rent calculator that every first time condo buyer should check out.  It is simple to use and you can easily adjust the assumptions to your specific situation.

The calculator covers all key elements that should go into the purchase decision, including:

Purchase price
How long you expect to live in the place
What are your mortgage details (interest rate, length, down payment)
Estimated future inflation and home price appreciation
Your personal tax situation (single versus joint, your marginal tax rate)
Ongoing home maintenance, insurance and utility costs

After you adjust each lever to your own assumptions, the calculator tells you the  monthly rent level below which renting is a better option.

Of course, buying your first condo is not just a dollars and cents decision. Times has a related article that suggest you ask yourself 5 question about your plans and lifestyle as part of your home buying decision.

 

Author My First Apartment
Seija Goldstein

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Seija Goldstein is My First Condo's General Manager and occasional blogger. She is a business consultant to media companies, and a long-time shareholder in a large New York City co-op. She has survived both kitchen and hallway renovations and is about to redo couple of bathrooms.

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