My husband and I were looking through BYU-Idaho’s school paper and there was an article that discussed renting vs. buying. The way the article was written out it appeared that buying a house would actually be cheaper per month than renting. My husband made the observation that they were not including everything such as property taxes.
I decided to research the true cost of renting versus buying a house in Rexburg, Idaho.
Here is what I found out:
- The average rent for a 2 bedroom apartment is $550
- The average 2 bedroom house is $115,000
- The annual property tax rate 0.8%
- The average interest rate is 6%
Using a calculator from this real estate website that calculates home appreciation, down payment and term lenghth as well as the above costs mentioned I was able to calculate that putting 10% down on a 30 year term would result in the monthly cost of renting would be $579 while owning would be $678. So it would be about $100 a month more to own but well worth the investment if you are able to afford the down payment and have a steady income.
