Rent vs. Invest While Attending A University in Boston
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Bill Butler OICP, CDPE RE/MAX Leading Edge Boston Area @BillButlerBos [email protected] 617-771-9376 www.BillBRE.com Do you have clients with children going to school in Boston? Provide Added Value to Your Clients by recommending a Real Estate Investment vs. Renting Receive 25% referral fee Rental Cost 4 Years Investment Return 4 Years ($52,800)* $121,215** Effective 4-Year Return on Investment: $174,015*** *Avg. 1BR rental $1100/mo. near university campuses **Based upon cash purchase of an “average” 2-Family Property near university campuses ***Does not include any additional tax benefits Investing isn’t for everyone. Call me to discuss your client’s needs.
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Sending your child to college in the Boston area? Consider investing in a condo or rental property vs. renting for 4+ years.
Transcript of Rent vs. Invest While Attending A University in Boston
Bill ButlerOICP, CDPERE/MAX Leading EdgeBoston Area@[email protected]
Do you have clients with children going to school in
Boston?
Provide Added Value to Your Clients by recommending a
Real Estate Investment vs. Renting
Receive 25% referral fee
Rental Cost 4 Years Investment Return 4 Years ($52,800)* $121,215**
Effective 4-Year Return on Investment:
$174,015***
*Avg. 1BR rental $1100/mo. near university campuses**Based upon cash purchase of an “average” 2-Family Property near university campuses***Does not include any additional tax benefits
Investing isn’t for everyone. Call me to discuss your
client’s needs.
PURCHASE 2-Family House/Duplex2 units - 1BR/1BTH, 3BR/1BTH
Purchase Price: $475,000Occupy 1BR unit
Taxes: $5000/yr x 4 years = $20,000Repairs: $500/mo. x 48 mos = $24,000
RENTAL INCOME 3BR unit for $2200/mo. x 48 = $105,600NET OPERATING INCOME (4 years) = $61,600
Appreciation: 3% x 4 years = $534,615GAIN: $59,615 - $44,000 operating costs = $15,615 NET
Equity GAIN of $15,615 + $105,600 Rental Income = $121,215NET GAIN of $174,015 vs. Renting
AssumptionsMade on Market Averages, Subject
to Change
RENT 1BR apartment $1100/mo. x 48 months = $52,800
LOSS: $52,800Assuming NO increase in rent
PURCHASE 1BR condominiumPurchase Price: $225,000
Taxes: $2500/yr x 4 years = $10,000Condo fee: $200/mo. x 48 months = $9600
Repairs: $25/mo. x 48 months = $1,200Appreciation: 3% x 4 years = $253,228
GAIN: $28,228 - $20,800 operating costs = $7428 NET GAIN of $60,228 vs. Renting
