Rent versus Buy

For most people, it is a better financial decision to buy a home than to rent one over the long-term.  For the other 30%, renting offers a better financial option.  Archers Homes can help you figure out which is best for you.  

Since the financial comparison is a complex process, we've developed a proprietary analysis tool that takes out the guesswork and simplifies the comparison.  Based on solid micro-economic principles, our tool goes far beyond the cursory analysis offered by other real estate companies that only looks at gross monthly payments.  Our rigorous tool captures the true costs of renting versus buying by analyzing all key variables like income, tax rates, and inflation expectations and clearly explains what the numbers mean so you can make the most informed decision.

Here's a sample chart of the in-depth analysis we prepare exclusively for you:

In this case study, the decision to buy leads to a lower monthly cash requirement than renting in year 19.  This scenario is typical of those with the savings needed to make a standard 20% downpayment.  The cash benefits of owning are only realized over a significant amount of time as fixed mortgage payments eventually gets out-paced by ever-increasing rental costs.  However, an important and often murky benefit of owning is the amount of accumulated equity over time and mortgage interest tax refunds (limits apply, depending on current and projected income levels).  When those two benefits are included, the net cost of ownership (or unreclaimable expenses) is significantly lowered so that buying is consistently better than renting. 

Since every situation is unique, please contact us for a free personal finance evaluation.