Illustration to compare between buying vs renting real estate in San Francisco. For informational only. Interested parties should research to their own satisfaction.

1. Calculators Intero Real Estate Services
San Francisco Office
Rent vs. Own Results
Your customized analysis is based upon an initial monthly rental payment of $3,100.00. The assumptions
have been made that your rent will increase by 5.00 % per year, over the next 4 years, and that you could
earn 1.00 % interest on the money that you would have used to pay your down payment and closing
costs.
You are considering buying a home valued at $650,000.00, with a down payment of 30.000
% or $195,000.00. Your monthly mortgage payment of $1,918.30 includes both principal and interest
and is based upon a loan amount of $455,000 at an interest rate of 3.00 %.
Summary
By buying your home versus renting you will save $133,014.51 over the next 4 years. The
breakdown of this analysis is provided below.
Please bear in mind that your decision to buy a home is not only a financial one. There are many
emotional reasons for wanting to own the home that you live in, even when the numbers don't justify the
purchase. Please view this analysis as one piece of information to consider as you make this important
decision.
Payment Comparison - Before Tax Savings
Rent Own
Initial Rental Payment: $3,100.00 Mortgage Payment: $1,918.30
Renters Insurance: $30.00 Homeowners Insurance: $173.33
Monthly Property Taxes: $633.75
Mortgage Insurance: $0.00
Total Monthly Payment: $3,130.00 Total Monthly Payment: $2,725.38
Yearly Maintenance Costs: $7,800.00
Total Payments Over 4 Years: $161,776.65 Total Payments Over 4 Years: $162,018.32
Payment Comparison - After Tax Savings
Rent Own
After Tax Rent Payments: $160,336.65 After Tax Mortgage Payments: $84,231.62
Average Monthly Payment: $3,340.35 Average Monthly Payment: $1,754.83

2. Tax Considerations
Rent Own
Total Interest Payments: $52,311.32
Total Property Taxes: $30,420.00
Deductible Closing Costs: $13,000.00
Total Deductible Costs: $95,731.32
Total Tax Savings: $14,359.70
Investing Compared to Appreciation on the Home
Rent Own
Down Payment and Closing Costs
Invested:
$208,000.00
Home Value at End
of 4 Years:
$790,079.06
Interest Earned at End of 4 Years: $8,445.63 Remaining Loan Balance: ($415,233.00)
Costs to Sell Home: ($39,503.95)
Downpayment/Closing Costs Invested at
End of 4Years:
$216,445.63 Net Appreciation: $335,342.11
Investing Compared to Appreciation on the Home
Rent Own Savings
Payments: $161,776.65 $162,018.32 ($241.67)
Tax Savings: $0.00 $14,359.70 $14,359.70
Investment or Appreciation: $216,445.63 $343,787.75 $118,896.48
Total Savings at End of 4
Years:
$133,014.51