You own your home...You should Own Your Office
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Lease vs Purchase |
Purchase
|
Lease
|
Purchase
|
Lease
|
|
Square Feet
|
1,188 | 1,188 | 1,640 | 1,640 |
|
Sales Price
|
$ 234,500.00 | $ 344,900.00 | ||
|
15% Down Payment
|
$ 35,175.00 | $ 51,735.00 | ||
|
Amount Financed
|
$ 199,325.00 | $ 293,165.00 | ||
|
Monthly Mortgage
Investment
|
$ 1,726.95 | $ 2,539.98 | ||
|
Real Estate Tax
|
$ 207.90 | $ 287.00 | ||
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Condominium Fee
|
$ 123.75 | $ 170.83 | ||
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Monthly Occupancy
Outlay
|
$ 2,058.60 | $1,831.50 | $ 2,997.81 | $2,528.33 |
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Annual per square
foot
|
$ 20.79 | $ 18.50 | $ 21.94 | $ 18.50 |
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Benefits of ownership
after 5 years
|
||||
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Down Payment
|
$ 35,175.00 | $51,735.00 | ||
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Loan Paydown
|
$ 47,838.00 | $ 70,359.60 | ||
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Appreciation
|
$ 37,349.77 | Rent Paid 1-5 | $ 54,933.63 | Rent Paid 1-5 |
|
5 year equity position
|
$ 120,362.77 | $116,684.19 | $ 177,028.23 | $ 161,079.18 |
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Benefits of ownership
after 10 years
|
||||
|
Down Payment
|
$ 35,175.00 | $ 51,735.00 | ||
|
Loan Paydown
|
$ 111,622.00 | $ 164,172.40 | ||
|
Appreciation
|
$ 80,648.39 | Rent Paid 1-10 | $ 118,616.76 | Rent Paid 1-10 |
|
10 year equity position
|
$ 227,445.39 | $251,953.14 | $ 334,524.16 | $ 347,814.10 |
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Benefits of ownership
after 15 years
|
||||
|
Down Payment
|
$ 35,175.00 | $ 51,735.00 | ||
|
Loan Paydown
|
$ 199,325.00 | $ 293,165.00 | ||
|
Appreciation
|
$ 130,843.36 | Rent Paid 1-15 | $ 192,442.96 | Rent Paid 1-15 |
|
15 year equity position
|
$ 365,343.36 | $408,766.93 | $ 537,342.96 | $ 564,291.05 |
| Summary: | ||||
|
Your net worth
is this much better !
|
$ 330,168.36 | $ 485,607.96 | ||
|
You
spent this much less cash !
|
$ 114,569.93 | $ 136,981.05 | ||
| Assumptions: | ||||
| 6.5% Interest Rate | ||||
| 15 year amortization | ||||
| Real Estate Tax estimate $2.10 per foot | ||||
| Condominium Fee $1.25 per foot | ||||
| Loan Paydown from amortization table | ||||
| Appreciation 3% per year | ||||
| Lease escalation 3% per year |
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