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Rent is cheaper by my analysis

Submitted by The Decision Strategist on September 4, 2007 - 15:09.

I did something similar and found renting to be much more valuable. What those of you who think buying a house is better are forgetting is that the renter can invest the difference between rent and the cost of the mortgage. If you add in the value of your investments over 30 years, the net worth is much higher for someone who has rented (in most cases, depending on appreciation rates etc...).

I put a spreadsheet together that you can use to check out the net worth under different interest rates and assumptions. You can find it here: http://tinyurl.com/2q9nc6.

-DS

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