I am trying to figure out the financial consequences of renting vs owning. Most rent vs own calculators are useless because they don’t take into account tax consequnces of owning (and other things). If anybody knows of a good calculator please let me know. In the meantime I am trying to do my own calculations. Some of the things to consider:
Owners expenses include mortgage interest, property taxes and regular maintenance. However mortgage interest and property taxes are tax deductible. Renters have to pay, well, rent which is not tax deductible.
Owners also have to pay insurance, HOA dues, water, sewer, garbage and heating expenses for water. For renters these are usually included in the rent.
If you purchase a home, you have to make a down payment (typically 20%). If you rent you can invest the money and earn returns on the investment. (Which may be taxable). Current 6 months CD yields are around 5.4% APY.
If you own, the value of your home increases, but keep in mind there’s typically a 6% selling expense.
Anything else I need to take into account?