Are you presently renting
a house? Have you considered the possibility that perhaps for around the same
amount you are paying each week in rent, you might be able to pay off a mortgage?
At the end 20 years of paying rent you own no more than when you started.
Pay off a bank loan over the same period for around the same amount per week
and at the end of the 20 years you and your family could now own a property
outright!
Below we have set
out a renting vs buying calculation based on number 27 Totara Street. We would
stress that these simplified figures are intended only to start you thinking.
In no way do they purport to represent or guarantee an actual return. For
that we strongly suggest you consult your bank or investment advisor.
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27
Totara Street
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Renting
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Buying
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Selling Price |
$73,000
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Deposit (10%) |
$7,300
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Loan to Repay |
$65,700
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Duration of Loan |
20
years
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| Interest Rate |
7.5%
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Monthly Repayments |
$529.27
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| Weekly Rent |
$140.00
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Weekly Repayments |
$122.14
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| Note that with this option you are actually paying an extra $17.86 each week. Over 20 years you would have paid out a total of $145,600 in rent, but still own nothing. | Throughout the repayment period you would have lived in the home rent-free. At the end of the 20 years you would be the outright owner of the property. | ||
| One of the factors not included here is the very real possibility that by the end of the 20 year period the value of your property will have also increased considerably. | |||
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Lending
Services
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| ANZ Home Buying |
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| BNZ Home Loan Solutions |
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| LoanSurf - put your mortgage out to tender |
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| The Mortgage Gurus |
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| E-Loan - get the right loan |
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| National Bank Home Loans |
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| Mortgage Line - residential mortgage brokers |
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| Wizard Home Loans |
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