Are you trying to decide whether to BUY a house in order to take advantage of tax deductions and equity accumulation? Then this app helps you decide whether buying a house is more (or less) economical than renting.
The app calculates an estimate of the money, when you buy a house, that does not come back to you AFTER taking into consideration tax deductions and equity accumulation. Therefore, if the monthly renting cost is lower than this estimate then it is more economical to rent. However, if the monthly rent is higher than this estimate, then it is more economical to buy the house. Since this app makes calculations based on USA tax rules, it is designed for the USA market.
Depending on the number of years, you plan to stay in the house, the app shows you the estimated money that is expensed or not returned. This estimate will change yearly and decrease the longer you stay in the house. In other words, the longer you stay in the house, it is likely to be more economical than renting. The following information is needed to make the calculations. The more accurate this information is, the more accurate are the estimates.
- your tax bracket
- property taxes for the house that you are planning to purchase
- home insurance for the house
- repair costs for the house
- association fees for the house
- Fixed rate mortgage information (if you are using this type of mortgage to purchase the house)
- Adjustable rate mortgage information (if you are using this type of mortgage to purchase the house)
- House Price
The estimates can be evaluated for many houses so you can compare and contrast. For each different house, input information such as house price, mortgage data and others can be changed to view different scenarios.
For definitions on what the various terms mean, double-tap on the label.
