True cost of home ownership. Great info graphic!

**Gabe** · 06-22-2010, 03:49 PM

http://www.moolanomy.com/wp-content/...eownership.png

**nodmicks** · 06-22-2010, 04:07 PM

Very Interesting!!!!!! I will remember that if dh ever gets his transfer request and we need to move.

**frugalfranny** · 06-22-2010, 04:22 PM

An interesting read!

wonder what market they were in that got the $1500 rent deposit?? (don't I wish!)

**Gabe** · 06-22-2010, 04:35 PM

I think typically a rent deposit is 1 month worth of rent on the lease no? Or is it first and last month rent on the lease?

**frugalfranny** · 06-22-2010, 04:39 PM

Depends on the market.....and right now our market isn't pulling first and last.

Unless I call it by a different name I can't have a 'deposit' of over the rent amt. for one month.....but I can give diff. names.......security deposit......cleaning deposit.......pet deposit...and have more there......again, if the market will bear it.

**monkeywrangler71** · 06-22-2010, 04:39 PM

Deposit here is 1/2 month rent.

The graphic doesn't include utilities on the rental side, but includes them on the owning side. Utilities on a rented house are no lower than on a house you own.

**monkeywrangler71** · 06-22-2010, 04:39 PM

Deposit here is 1/2 month rent.

The graphic doesn't include utilities on the rental side, but includes them on the owning side. Utilities on a rented house are no lower than on a house you own.

**Gabe** · 06-22-2010, 04:41 PM

Buy / Rent calculator decision.
Nice one from NY times.

Is It Better to Buy or Rent? - Interactive Graphic - NYTimes.com

**Gabe** · 06-22-2010, 04:42 PM

Originally Posted by monkeywrangler71

Deposit here is 1/2 month rent.

The graphic doesn't include utilities on the rental side, but includes them on the owning side. Utilities on a rented house are no lower than on a house you own.

You are correct. It is flawed a little.

**Siebrie** · 06-23-2010, 08:49 AM

Here the deposit is 3 months rent, but it's in a special account and the renter gets the interest, so it pays to shop around. both landlord and renter need to sign to release the money.

Also, rent is €700 average, but house prices are equal, so the cut-off point would be at 10 years, right?

**Greebo** · 06-23-2010, 09:18 AM

The deposit varies by region and state law, but also a *security deposit* specifically shouldn't count as an expense of renting, because that money is yours, being held in earnest by the landlord. Unless there are damages or delinquencies that the landlord needs compensation for, you should be getting that deposit back.

NON refundable deposits for pets, etc. are different, of course.

**Preston** · 06-23-2010, 07:57 PM

Originally Posted by Greebo

The deposit varies by region and state law, but also a *security deposit* specifically shouldn't count as an expense of renting, because that money is yours, being held in earnest by the landlord. Unless there are damages or delinquencies that the landlord needs compensation for, you should be getting that deposit back.

NON refundable deposits for pets, etc. are different, of course.

I disagree. I security deposit is a necessity to move in. While you live there, it is cash not available to you, and will only be returned to you when you move out. in my experience, it gains no interest as well.

Although you may get it back in the end, you might also not. I have had shady landlords claiming damage that took months to get the full deposit back and that was a lot of time trying to get that resolved.

Also, not factored into this is the freedoms that home ownership come with. I no longer have to deal with yearly inspections (or the last place we lived, more like every six months since the place kept changing ownership) and also we can now have our 7 cats and the wife is happy with that. No deposits to worry about. No weight restrictions. No stupid rules for FedEx and no assigned parking space. I can work on the car without being bothered. The list goes on.

The cost of my mortgage, including taxes and insurance is $700/month on a 4 bedroom house. My rent on a one bedroom was $580. For slightly more monthly , I have about 5X the living space, and a garage.

The electric bill is the same.
But the gas bill is higher.
And we have to pay a water bill, but our landlord was trying to put that on our tab too right before we put in our notice to vacate.

But anybody with two brain cells will tell you not to buy a house until you are ready to settle. If you think you may be moving within the next couple years, don't bother. Too much hassle. Do not add any more variables to the situation than necessary.

**Greebo** · 06-24-2010, 09:06 AM

Originally Posted by Preston

I disagree. I security deposit is a necessity to move in. While you live there, it is cash not available to you, and will only be returned to you when you move out. in my experience, it gains no interest as well.

That's a fair point - though in Maryland, by law, we have to give 3% simple interest on security deposits we hold for our tenants.

Although you may get it back in the end, you might also not. I have had shady landlords claiming damage that took months to get the full deposit back and that was a lot of time trying to get that resolved.

Yes but you can be proactive about that - inspect the property before moving in, note defects, have landlord sign the inspection, give them a copy, keep original, and use the same form on move out and have landlord note defects and YOU sign it. Then if there's a dispute, you have a written record for the judge.

I encourage my tenants to hold onto their move-in inspection report carefully.

**PinkTulip** · 06-24-2010, 09:45 AM

It all depends on where you live. Here renting is cheaper than buying a home. DH and I rent because the market in Canada is stupid right now. Where we live the average home is $400,000. If you look at what people make (an average of $900 a week), the housing market is way overpriced (but falling). If we bought right now, we would be looking at a $2,000 per month mortage, plus property taxes, plus upkeep, etc etc. Not a good idea right now.

I know people like to think their home is going to go up every year. Tell that to the millions of Americans who have lost everything because they bought too high. A lot of Canadians will be singing the same tune really soon...

What the chart does not say is to rent really cheap and invest the rest into something that will actually earn you some return right now.

**MomToTwoBoys** · 06-24-2010, 10:23 AM

Originally Posted by monkeywrangler71

Deposit here is 1/2 month rent.

The graphic doesn't include utilities on the rental side, but includes them on the owning side. Utilities on a rented house are no lower than on a house you own.

I think that depends on if you get into a place where utilities are included. We had that at our basement suite. A 2 bedroom and 1 bath basement suite for $625 a month including utilities. When we bought the house, we ended up with $667 per month not including utilities. Utilities for us are about $250 a month and that includes everything. Now if you tried to rent anywheres, you're looking at $950-$1100 for that basement suite with utilities included.