Buying $550,000 vs. Renting My Property (San Diego County, CA)
Estimated Cashflow Buying Yr1
Rent Yr1
Rent Yr15
$2,154
$2,554
$4,730
$825
$38
$70
Monthly P & I Prop. Tax / Ins.
$229
$0
$0
$3,208
$2,592
$4,800
Maint. & Repairs Monthly Exp.
$586,622
Total Cashflow
Interest Rate 3.250%
APR 4.292%
$4,800
$3,208
$643,830 Annual Rental Increase 4.5%
Years
Cashflow Difference Appreciation Gain
$57,208 Amortization Gain
$634,286
$188,416
Starting Home Value: Historical Appreciation (Avg./Yr): Estimated Value After 15 Years:
$550,000 5.25% $1,184,286
Cost To Sell Real Estate Commission: 6% Based on $1,184,286 Future Value after 15 Years
$71,057
Original Loan Amount: Remaining Principal Balance:
$495,000 $306,584
Tax Benefit $15,692 Standard Deduction $12,550 in 22% Tax Bracket Benefit Above Standard Deduction after 15 Years
$804,882
Net Gain by Buying a Home
$412,785 $348,926 $289,407 $234,028 $182,598 $134,936 $90,868 $50,227 $12,858 $-21,391
Initial Closing Costs Cashflow Difference Cost To Sell
-$19,663 $57,208 -$71,057
Appreciation Gain Amortization Gain Tax Benefit
$634,286 $188,416 $15,692
Point Mortgage Corporation is licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act. 2421 Fenton Street, Suite A, Chula Vista, CA 91914. NMLS ID #231073 (www.pointmtg.com). +1 619.475.4095. Point Mortgage Corporation and Coldwell Banker West are affiliated companies with common ownership and any other real estate companies showcased are not affiliated nor share common ownership. You are free to shop around for the best price and are not obligated to use the services of one or the other. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs, rates, terms, and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend.
Powered By MBS Highway Loan and monthly payment buying scenarios used for informational purposes only and may not be specific to your situation. Rates expressed may not be available at this time. This document should not be construed as investment or mortgage advice or a commitment to lend. Your results may vary. There are no guarantees, promises, representations and/or assurances concerning the level of accuracy you may experience. For actual and current terms and rate information, please contact your lender directly. APR of 4.292% assumes a 3.250% simple fixed interest rate assuming $60,401 in fees included in APR. Monthly principal and interest payment based on a fully amortizing fixed interest loan of $495,000 with 360 monthly payments at the assumed simple interest rate (Current as of 8/30/2021). *Lender is not a tax consultation firm. Please seek advice from a tax professional.Source: MBS HighwayMLS Data provided by Listing Booster. Monthly expenses may or may not include condominium or HOA fees, if applicable; your payment may be greater.
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