Ever wonder why buying storage is so popular? Read on...
Until you have actually sat down and ran the numbers, it is hard to imagine at first blush why owning storage is such a great decision. Owning your storage freezes your costs at today's rate, unlike rentals that traditionally incrementally raise your rent on a fairly regular basis. Further, you have the opportunity to enjoy potential appreciation, build equity, and actually own something of real value. Rentals do none of the above.I am not much of a numbers guy, I generally go by how things "feel". However, sometimes you just have to sit down and run the numbers. Well, despite my hatred of black and white reality, I put all the numbers together for you. It is pretty surprising how it all works out.
Rent vs. Purchase Analysis, 30% Down, 4.75% Interest
| Purchase Price | Rental/Purchase Payment | Length of Time | Total | Net Monthly Expense |
|---|---|---|---|---|
| Rental | $400 | 60 Months | $24,000 | $400 |
| $67,999 | $307.60 (4.75% @ 20 Years, 30% down) | 60 Months | $18,456 | |
| Equity Earned | (Pay down of loan after 60 months) | 60 Months | -$8,204.76 | |
| Annual Taxes | $951.98 (1.4% of sales price) | 60 Months | (75%) $3,569.92 | |
| HOA Dues | $35 per month | 60 Months | $2,520 |
$272.35 Includes HOA, Taxes, Insurance You save $7,659 over 5 years vs rental More Real World Results Click Here |
Rent Vs. Purchase Analysis with 2% Appreciation
Just for grins, lets see what happens when we add 2% appreciation to the equation, with everything else being equal| Purchase Price | Rental/Purchase Payment | Length of Time | Total | Net Monthly Expense |
|---|---|---|---|---|
| Rental | $400 | 60 Months | $24,000 | $400 |
| $67,999 | $307.60 (4.75% @ 20 Years, 30% down) | 60 Months | $18,456 | |
| Equity Earned | (Pay down of loan after 60 months) | 60 Months | -$8,204.76 | |
| Projected 2% appreciation | $1,359 Annual value increase over 60 months | 60 Months | -$6,795 | |
| Annual Taxes | $951.98 (1.4% of sales price) | 60 Months | (75%) $3,569.92 | |
| HOA Dues | $35 per month | 60 Months | $2,520 |
$159.10 Includes HOA, Taxes, Insurance You saved $14,454 over 5 years vs rental More Real World Results Click Here |
Rent Vs. Purchase Analysis with 5% Appreciation
Okay- Lets get wild here and see what happens with an annual 5% appreciation -| Purchase Price | Rental/Purchase Payment | Length of Time | Total | Net Monthly Expense |
|---|---|---|---|---|
| Rental | $400 | 60 Months | $24,000 | $400 |
| $67,999 | $307.60 (4.75% @ 20 Years, 30% down) | 60 Months | $18,456 | |
| Equity Earned | (Pay down of loan after 60 months) | 60 Months | -$8,204.76 | |
| Projected 5% appreciation | $3,399 Annual value increase over 60 months | 60 Months | -$16,999 | |
| Annual Taxes | $951.98 (1.4% of sales price) | 60 Months | (75%) $3,569.92 | |
| HOA Dues | $35 per month | 60 Months | $2,520 |
+ $10.96 Profit Includes HOA, Taxes, Insurance Total More Real World Results Click Here |