The Monologue
Assuming an annual appreciation of {{ data.appreciation }}% percent, this property will be worth approximately ${{ results.propertyValue}} in {{ data.timeline }} years. You will pay approximately ${{results.openingCosts}} in purchasing costs and ${{results.closingCosts}} in
selling costs . You will contribute a total of ${{results.totalPrincipal}} in
principal over the {{data.timeline}} years. This will leave you with a mortgage remaining of ${{results.mortgageRemaining}}.
You will have a total of ${{ results.lostSavings }} in lost potential savings, if your monthly expenses associated with ownership are higher than renting. Additionally, you will lose out on approximately ${{results.lostInvestments}} by not investing your downpayment instead.
You will end up paying a total of ${{ results.totalInterest }} to the bank in interest, and approximately ${{results.totalMiscExpenses}} in
other expenses that you won't get back. With all that said, and considering potential appreciation, transaction costs, all expenses, potential lost savings, and lost investment potential, your net profit will be ${{results.netProfit}} when you sell the property in {{data.timeline}} years.
In that same timeframe, you would spend a total of ${{results.cumulativeRent}} on rental expenses over the next {{data.timeline}} years. After considering the money you would spend on renting, costs of ownership, transaction costs, and the value of the property in {{data.timeline}} years, your total profit of buying compared to renting would be ${{results.netProfitAfterRenting}}.
Monthly Cashflow
Your total monthly mortgage payment will be ${{results.monthlyMortgageCost}}, however, when considering all owning expenses, your total monthly cost of ownership is ${{results.monthlyOwningCost}}. This is in comparison to your monthly total rental expenses of {{ results.monthlyRentingCost }}.
The Consensus
If you can afford the monthly cost of ownership and your total profit is in the positive, then it may be worth buying! But its not all about money, and I haven't a way to incorporate a "happiness factor" in these calculations. Good luck!
The Numbers
Total Principal Paid at {{ data.timeline }} years
{{ results.totalPrincipal }}
Total Interest Paid at {{ data.timeline }} years
{{ results.totalInterest }}
Estimated Property Value at {{ data.timeline }} years
{{ results.propertyValue }}
Estimated Selling Costs at {{ data.timeline }} years
{{ results.closingCosts }}
Initial Upfront Purchasing Costs
{{ results.openingCosts }}
Total Expenses on Strata, Property Taxes, Insurance, Utilities, minus rent income
{{ results.totalMiscExpenses }}
Potential Lost Savings on Higher Monthly Expenses
{{ results.lostSavings }}
Potential Lost Savings of Investing Downpayment instead
{{ results.lostInvestments }}
Net Profit, without comparing to renting:
Net Profit, comparing renting to buying :
{{ results.netProfitAfterRenting }}
The Grid (Amortization Table & Monthly Breakdown)
Month
Monthly Mortgage
Estimated Rent
Interest
Principal
Mortgage Balance
Property Value
Cumulative Interest
Cumulative Principal
Cumulative Rental Costs
Cumulative Owning Costs
{{item.period}}
{{item.monthlyMortgage}}
{{item.estimatedRent}}
{{item.monthInterest}}
{{item.monthPrincipal}}
{{item.balance}}
{{item.propertyValue}}
{{item.interest}}
{{item.principal}}
{{item.cumulativeRentCost}}
{{item.cumulativeOwningCost}}
