Tips and Advice for Home Buyers and Owners

How much rent have you been throwing away over the years?

Rent	1 year	3 years	5 years	10 years
$550	6,000	18,000	30,000	60,000
$600	7,200	19,800	33,000	66,000
$650	7,800	23,400	39,000	78,000
$700	8,400	25,200	42,000	84,000
$750	9,000	27,000	45,000	90,000
$800	9,600	28,800	48,000	96,000
$850	10,200	30,600	51,000	102,000
$900	10,800	32,000	54,000	108,000
$950	11,400	34,200	57,000	114,000
$1000	12,000	36,000	60,000	180,000

Fact: Your rent will increase
The above does not take into consideration the fact that rents are increasing at usual rates due to the increased cost of:

1. construction

2. operating expenses

3. interest rates

4. real estate taxes

5. shortage of rental units

Fact II: Property rates will double
If property values appreciate (increase in value) at the rates below, it will double in value as shown.

Rate	Number of years value will double
5%	15 years
6%	12 years
7%	11 years
8%	10 years
9%	9 years
10%	8 years

For example, if you owned a home today that is worth $80,000 and if it increased in value at the rate of 5% per year, it would be worth over $166,000 in 15 years, an average of $5,733 per year or about $477 per month—more than some people pay in rent.

On the other hand, someone paying $700 in rent would have paid out $126,000 in 15 years and have no equity to show for it. No wonder the purchase of a home is one of the best investments you'll ever make!