| File:OwnvsRent.xls |
Copyright
Zeppelin Partners Limited |
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| TABLE
ILLUSTRATING OWNING AND RENTING A HOME OR REAL ESTATE |
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| Subject: |
Owning vs Renting a Home
= Net Rent Basis = Carrying costs e.g. management fee, maintenance,
government rates etc are excluded (deemed to be the same for both owner and
renter) |
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| Date: |
Feb-01 |
Updated: |
Mar-01 |
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| Remarks: |
For rough reference only.
No allowance is made for RISK in Investment. Calculations in Nominal Terms
unless otherwise stated or configured. |
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This spreadsheet is for
very preliminary estimates only and users are advised to seek proper
professional consultation where required. |
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Zeppelin and its staff,
executives, associates, consultants, and the like do NOT accept
responsibility / liability for losses, damages, claims and the like arising
out of the reference to or use of the content contained herein. |
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Zeppelin is not to be
held liable for any viruses, bugs, errors, omissions and the like contained
in the content herein or the medium carrying it. |
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| Assumptions: |
Scenarios = |
Choice of 5, 10, 15, 20
OR 25 Years (based on Mortgage Term) |
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| Home Price $ = |
3,000,000 |
Mortgage Level = |
50.00% |
Mortgage $ = |
1,500,000 |
Mortgage Rate = |
9.00% |
Term years = |
25 |
Home $ +/- pa = |
4.00% |
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| Rent per month $ = |
12,500 |
Rent per year $ = |
150,000 |
Investment $ = |
1,500,000 |
Investment +/- pa = |
9.00% |
Lease Term years = |
25 |
Rent +/- pa = |
4.00% |
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| Summaries: |
Owner Scenario |
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Nominal |
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Value - Outlay + |
Nominal |
Net Value$ Now + |
Renter Scenario |
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Nominal |
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| Scenarios |
Total Outlay $ |
Value $ Now |
Value - Outlay $ |
% Gain / (Loss) |
Opportunity Cost |
Opportunity Cost |
% Gain / (Loss) |
Opportunity Cost |
Total Outlay $ |
Value $ Now |
Value - Outlay $ |
% Gain / (Loss) |
Net Value $ Now |
| 5 Years |
(3,428,193) |
3,649,959
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221,765 |
6.47% |
(1,342,023) |
(1,120,257) |
-32.68% |
2,307,936 |
(2,312,448) |
2,307,936
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(4,512) |
-0.20% |
2,307,936 |
| 10 Years |
(3,837,301) |
4,440,733
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603,432 |
15.73% |
(889,687) |
(286,256) |
-7.46% |
3,551,046 |
(3,300,916) |
3,551,046
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250,129 |
7.58% |
3,551,046 |
| 15 Years |
(4,291,325) |
5,402,831
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1,111,506
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25.90% |
60,893 |
1,172,399
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27.32% |
5,463,724 |
(4,503,538) |
5,463,724
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960,186 |
21.32% |
5,463,724 |
| 20 Years |
(4,786,394) |
6,573,369
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1,786,975
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37.33% |
1,833,247
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3,620,222
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75.64% |
8,406,616 |
(5,966,712) |
8,406,616
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2,439,904
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40.89% |
8,406,616 |
| 25 Years |
(5,317,734) |
7,997,509
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2,679,775
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50.39% |
4,937,112
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7,616,887
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143.24% |
12,934,621 |
(7,746,886) |
12,934,621
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5,187,735
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66.97% |
12,934,621 |
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