Hey All,
I just wanted to get peoples feedback on the best way to go about working out the sums on whether or not owning (PPOR) or renting is cheaper.
I have owned a property with my brother for 137 weeks now and want to know how it has fared in regards to this. The best way I can think of is to simply calculate what renting would have cost and what owning has cost.
So for a similar property I estimate rent would have cost me $350 a week. That means $350 * 137 weeks = $47,950. Contents insurance would have roughly been about $1000 so total $48,950.
Then in regards to what I have currently paid
Interest and Principal = $40,377
Rates = $2000
Home Insurance = $1280
Repairs = $5000
So all up $48,657.
Then on top of this was my deposit of 17k (brother had large deposit) but do I calculate that as a cost or just the interest I have lost on it not being in the bank?
As far as I can see it has worked out almost identical but I have got the benefit of 10k of principal being paid off and a further 2.5 years of growth.
I just feel I am missing something important!
I just wanted to get peoples feedback on the best way to go about working out the sums on whether or not owning (PPOR) or renting is cheaper.
I have owned a property with my brother for 137 weeks now and want to know how it has fared in regards to this. The best way I can think of is to simply calculate what renting would have cost and what owning has cost.
So for a similar property I estimate rent would have cost me $350 a week. That means $350 * 137 weeks = $47,950. Contents insurance would have roughly been about $1000 so total $48,950.
Then in regards to what I have currently paid
Interest and Principal = $40,377
Rates = $2000
Home Insurance = $1280
Repairs = $5000
So all up $48,657.
Then on top of this was my deposit of 17k (brother had large deposit) but do I calculate that as a cost or just the interest I have lost on it not being in the bank?
As far as I can see it has worked out almost identical but I have got the benefit of 10k of principal being paid off and a further 2.5 years of growth.
I just feel I am missing something important!