There is lots of discussion about this but mostly on an average basis, like the article that CNBC wrote yesterday. They provided average indexes for renting versus buying, in metropolitan markets in the US such as San Francisco, Seattle, Boston, New York, Las Vegas etc…
Sometimes there are homes/condos that are just for rent, and other times there are homes that offer both, buying or renting. This is the case with the example in this article.
66 Cherry Valley Rd – Off Round Hill – designed by architect Ulrich Franzen – built in 1992. It is listed for 13,000,000 or you can rent this interesting home for a mere $40,000 a month.
The William Raveis calculator takes into consideration, the cost of the money applied to the down payment, in what otherwise might be yielding higher returns elsewhere and adds this to the cost of owning..fair enough. And for this calculation, we’ve applied .01% appreciation over 30 years of the mortgage – knowing that many people are dismayed with thinking that a home is an investment.
Please keep in mind that maintenance expenses are estimates and not based on fact. Closing and insurance are estimates as well, since this expense can broadly vary depending on coverage.
In this example, it is cheaper to rent than buy.
This calculator is in excel, so please feel free to email me and I will send it to you. Alternatively, I will do it for you. My email is: firstname.lastname@example.org