Purchase vs. Lease
Print PDFHF11 makes property ownership a reality. For many businesses, ownership provides numerous benefits over conventional leasing.
Owning |
|
Total Area |
4,163 SF |
Price PSF |
$250 |
Total Price |
$1,040,750 |
Improvements |
$89,921 |
Total Investment Cost |
$1,130,671 |
Down Payment (25%) |
$282,668 |
Mortgage Amount |
$848,003 |
Interest Rate |
3.25% |
Amortization Period |
25 Years |
Mortgage Payments (5 years) |
|
Monthly |
$4,123 |
Annually |
$49,472 |
TOTAL MORTGAGE PAID |
$247,632 |
TOTAL PRINCIPAL + INTEREST PSF |
$11.90 |
TOTAL INTEREST PAYMENTS PSF |
$6.13 |
Mortgage Details |
|
Remaining Mortgage Balance (After 5 Years) |
$728,275 |
Principal Reduction (After 5 Years) |
$119,728 |
Total Savings vs. Leasing (After 5 Years) |
$205,406 |
Net Benefit to Owning (Annualized) |
$41,081 |
Return on Investment as Owner |
14.53% |
Leasing |
|
Total Unit Size |
4,163 SF |
Net Lease Rate PSF |
$16.00 |
Monthly Net Rent |
$5,551 |
Annual Net Rent |
$66,608 |
Inital Lease Term |
5 years |
Lease Payments (5 years) |
|
Monthly |
$5,551 |
Annually |
$66,608 |
TOTAL RENT PAYMENTS |
$333,040 |
TOTAL PAID PSF |
$16.00 |
Mortgage calculation is based on 25% down payment, 3.25% interest rate and 25 year amortization. Calculation does not include capital appreciation of unit.
