Rent vs Own Calculator

irvinehomeowner

irvinehomeowner

Well-known member
Since IR changed the Rent vs Own Calculator on the IHB... I find it a bit more confusing and his site layout makes it harder to use.

I've been looking for others and it turns out, TIC/Irvine Pacific has a decent one:
http://irvinepacific.com/HomeBuyingTools/Rent-vs-Own.aspx

If you try to ignore the marketing stuff at the top, it has a decent interface where you can change the values and determine what would save you more over time. You can even adjust home value appreciation and number of years you plan to own the home. It also takes into account tax savings.... BUT it recalculates back home equity into the final comparison which I think might be a little misleading as the original down payment should be calculated as a savings on the Rent side.

I used 0% home appreciation (it wouldn't let me put negative) to portray a more reasonable expectation and using 3 or 5 years... owning seems to come out ahead (if you don't factor your down payment).
 
In IR's calculator he subtracts the payment towards equity when calculating total cost of ownership.
For example the 500/- out of a P+I of 1800 which goes towards prinicipal. I try to half that number
to account for price reductions in future (I'm Still bearish on the housing even in Irvine).

Like you said most calculators don't allow for a -ve appreciation.

irvinehomeowner said:
Since IR changed the Rent vs Own Calculator on the IHB... I find it a bit more confusing and his site layout makes it harder to use.

I've been looking for others and it turns out, TIC/Irvine Pacific has a decent one:
http://irvinepacific.com/HomeBuyingTools/Rent-vs-Own.aspx

If you try to ignore the marketing stuff at the top, it has a decent interface where you can change the values and determine what would save you more over time. You can even adjust home value appreciation and number of years you plan to own the home. It also takes into account tax savings.... BUT it recalculates back home equity into the final comparison which I think might be a little misleading as the original down payment should be calculated as a savings on the Rent side.

I used 0% home appreciation (it wouldn't let me put negative) to portray a more reasonable expectation and using 3 or 5 years... owning seems to come out ahead (if you don't factor your down payment).
Click to expand...
 
The irvine pac calculator does account for the total home equity, which includes the principal paid towards the home + the down payment.
IR's calculator however also accounts for the interest income lost from downpayment.

waitin4ever said:
In IR's calculator he subtracts the payment towards equity when calculating total cost of ownership.
For example the 500/- out of a P+I of 1800 which goes towards prinicipal. I try to half that number
to account for price reductions in future (I'm Still bearish on the housing even in Irvine).

Like you said most calculators don't allow for a -ve appreciation.

irvinehomeowner said:
Since IR changed the Rent vs Own Calculator on the IHB... I find it a bit more confusing and his site layout makes it harder to use.

I've been looking for others and it turns out, TIC/Irvine Pacific has a decent one:
http://irvinepacific.com/HomeBuyingTools/Rent-vs-Own.aspx

If you try to ignore the marketing stuff at the top, it has a decent interface where you can change the values and determine what would save you more over time. You can even adjust home value appreciation and number of years you plan to own the home. It also takes into account tax savings.... BUT it recalculates back home equity into the final comparison which I think might be a little misleading as the original down payment should be calculated as a savings on the Rent side.

I used 0% home appreciation (it wouldn't let me put negative) to portray a more reasonable expectation and using 3 or 5 years... owning seems to come out ahead (if you don't factor your down payment).
Click to expand...
Click to expand...
 
irvinebuyer said:
The irvine pac calculator does account for the total home equity, which includes the principal paid towards the home + the down payment.
Click to expand...
The IrvinePac calculator is flawed in that way. The down payment should not be added back to your Buy bottom line costs unless you are also going to add it to the Rent side (not even including any investment interest).
IR's calculator however also accounts for the interest income lost from downpayment.
Click to expand...
But I'm not sure if he has a calculation for equity.
 
I like that one too because it's graphical and has many more variables...  but it is a bit overwhelming... you have to scroll up and down to look at the data.

But of the ones out there... it IS the most comprehensive and does not have any spin.
 
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