If you are trying to assess profit or loss involved in buying home or continue staying in rented home this app would be useful for you. This easy to use app will let you tweak different parameters and give you instant feedback on net profit/loss.
How it works -
This app accepts following key inputs :
For Buy Scenario- House price, Down payment, Loan interest rate and Tenure, House appreciation rate, Holding Period and all other expenses involved in owning house
For Rent Scenario - Rent, Rent appreciation rate, Utilities, Return on investment in case if you invest house down payment and other savings you gain by renting
For Tax - The tax bracket. It will be used to calculate tax savings if you buy house
After considering all these inputs this app will give you profit/loss you will be in at the end of holding period for Buy scenario and Rent scenario. The buy profit is nothing but the profit you earn when you sell house at the end of holding period. The rent profit is the difference in rental expenses and saving if you rent instead of buy. Then based on this it will calculate net profit/loss for buy scenario (as opposed to rent scenario) and show you decision if you should buy or rent.
Who should use this app -
It is ideal for first time home buyer's to do comprehensive analysis of various buy options against rent.
It can be useful for all home buyer's to study the break even point (point in time when they will start earning profit on home if they sell)
It is useful to get estimate of monthly expenses towards mortgage payment, property tax, insurance, maintenance etc.
Now version 2.0 is available. What is new in this version?
1) The report is created with visual explanation.
2) The separate trade-off panel is provided where users can easily change various inputs and get visual feedback on
This app gives approximate estimate and users should use them as a guideline.