First-Time Buyers – Buying Real Estate vs. Renting

First-Time Buyers – Buying Real Estate vs. Renting

First time Buyers

Do you realize how much you pay in rent over a period of years? In addition to the monthly payment you should figure in the amount you would have accumulated had you invested your payments and earned 10 percent interest. This gives you a total picture of what’s happening to your money. The rent you pay adds up to a sizeable sum, with no benefits!

Buying Vs. Renting

Buying Renting
You will have a great tax write-off. Mortgage Interest (being able to deduct the mortgage interest you paid throughout the year.) You have no tax write-off.
Real Estate Tax, you can deduct real estate tax, which you pay at the time of your loan closing. YOU have no Real Estate Tax write-off.
Capital Gains, if you sell your home you can exclude up to $250,000 in capital gains from your taxable income. If your married its $500,000 – required time, two years. NO Capital Gains Exclusion.
Your housing expense may never go up. Your rent can go up at anytime.
You can use, decorate, make physical changes and enjoy your home as you see fit, adding equity. You must get permission to makeany changes to your dwelling.
You may build a large equity as your home appreciates in value. You have no equity to build up.Your money is gone for good.
You are not at the mercy of a landlord. You can be evicted for beinglate on one month’s rent.
Your house will become a home, not a temporary living situation. Your living situation is alwaystemporary and usually subject to a 30-day notice.


If monthly Rent is 1 Year 2 Years 3 Years 5 Years 7 Years 10 Years 20 Years
$700.00 8,400 16,800 25,200 42,000 58,800 84,000 168,000
$800.00 9,600 19,200 28,800 48,000 6 7,200 96,000 192,000
$900.00 10,800 21,600 32,400 54,000 75,600 108,000 216,000
$1,000.00 12,000 24,000 36,000 60,000 84,000 120,000 240,000
$1,200.00 14,400 28,800 43,200 72,000 100,800 144,000 288,000
$1,400.00 16,800 33,600 50,400 84,000 117,600 168,000 336,000
$1,600.00 19,200 38,400 57,600 96,000 134,400 192,000 384,000
$1,800.00 21,600 43,200 64,800 108,000 151,200 216,000 432,000
$2,000.00 24,000 48,000 72,000 120,000 168,000 240,000 480,000
$2,200.00 26,400 52,800 79,200 132,000 184,800 264,000 528,000

On the chart above, find your per month rental payment and you can determine how much money you are “giving away” in rent and interest over 5, 10, 15, 20 or 30 years.

Money which could be used to build equity in your own real estate!

—For more on this topic or questions regarding real estate in Steamboat Springs, feel free to call Charlie at 970-846-6435 or write me an email at: I will answer your post or email promptly with candid and informed answers. Click here to view all properties in Steamboat Springs in “real time” — This is one of the few real estate sites showing all foreclosed and all short sale listings in real time and updated every few minutes.



Originally from Seattle, Washington, Charlie relocated to Steamboat Springs with his wife Carol and their son, Finn, to become a Steamboat Springs realtor eager to share the joys of Colorado. Charlie is a second generation realtor and is proud to be a member of Steamboat Sotheby's International Realty in Steamboat Springs, Colorado. After graduating from Whitman College in Walla Walla, Washington, Charlie worked in the high-tech industry in Seattle for several years before deciding to follow his father's lead and began his career in real estate. Working for Windermere Real Estate in Seattle, Charlie had a great, innovative career in the highly competitive Seattle market before moving to Steamboat in 2005 and delving deep into Steamboat Springs real estate. At Steamboat Sotheby's International Realty, Charlie has become one of the top agents with his innovative style and tireless perseverance.
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