Evening star., 1926-11-13
CHEAPER TO OWN
THAN RENT HOME
Opportunities for Invest
ments and Business Ad-
ment Also improved.
BY 4. Il. MCNROE.

The home owner occupies an en-
Viable position in the scheme of
things. He enjoys the security of
the independent and the respect of
his community. his State and his Ma
| ton. There is no comparison between
the status of the home owner and the
renter. and there are so many ad-
| vantages in home ownership over
renting that it is hard to believe so
many people are listed as renters.
The renter who hangs his hat in
temporary quarters is subject to the
desires OF his londIord and is usually
classed az "foater," whether or not
he Is one at heart.
From the practical side. the most
important reason why you should
own your home is that it is actually
cheaper to own q home than to rent
| Thousands of renters do not know
this but 1t has been proved thousands
Of times. The family that wants a
home badly enough to save ST 900 for
an initial payment can buy a home
costing $500 in 111a years and save
81 400, assuming that they would pay
$50 month rent for a similar home
over the same period Of time.
Costs Are Listed.
Here are the costs during II 7-12
years Of buying and owning an $500
home on which 81 900 was the initial
payment:
Interest, diminishing annually with
principal payments, during period at
6 per cent. s2.923; taxes at $1OO a
year. approximately, $1,159; repairs at
$3.50 per year, approximately, s1,737;
insurance at $25 per year, approx
mately, $3.50: heat at 500 per year,
approximately. $1.159; interest at
per cent compounded semi-annually
on original investment Of $1,000, $3.50;
total cost for II 7-12 years. $8,247.
Cost Of renting same home-Pay-
ments of SS5 per month for II 7-12
years. 1875.
Deductions from gross rent-In-
terest compounded semi,annually on
average total amount disbursed each
month by owner. in excess of rent,
ASSUMING that the renter puts this
amount. approximately $21. out at
per cent each month. S1,175; net cost
of renting. $1O.640.
Comparison in dollars and cents
Total cost of renting for period. s1o,-
$40: total cost Of owning for period,
$S.24I; total saving by owning. $2.393;
average saving per month, $17.22.
In owning home on the above
UdSlS, the ulOney ulSDuESoO edCn IQONCU
would be $1O6. This includes the
monthly payment Of SIS and the pro-
rata share of taxes, insurance, etc,
which must be paid in addition. and
which all together results in $21 more
than the rental. However. this Is
not to be confused with actual cost.
as a portion of the monthly paymen'
is applied as @ reduction of the princi-
pal amount.
Actual Cost Saving.
Therefore. assuming when renting
that you would save this $21 per
month and receive interest therefrom,
which is rather unlikely. as most
people have trouble in saving con-
sistently unless forced to do so. you
would still save approximately $2.400
in actual cost by owning a home.
In the ownership Of homes lies the
foundation Of wealth. The renter
curities. but experience shows that
the home owner does. In saving for
his home he has laid foundation of
thrift that he carries throughout his
life. He has learned to save and he
continues TO do so. He sees before
his eyes the result of his first attempt
to save a considerable sum. He real
ICES what his effort has brought him
and statistics show that from then
on he is usually classed as a good
patron of his bank.
The home owner is bound Continu-
ally to add to the value Of his home.
He makes additions and improve
ments. paints little, plants trees and
shrubs and thus increases the equity
in his property. The renter has the
same leisure hours in which this
work could be done. but, of course. he
is not interested in improving some
thing that does not belong to him.
In addition. the home owner ee-
cures business opportunities that the
renter cannot obtain. He Is more
likely prospect for loans or a part
nership or share in a business. Fur
thermore, many organizations engag-
ing a new man or promoting an old
employe ask-Do you own your home?
II the answer is yes. the employer
knows that this man can be depended
upon, that he is not likely to move
or change his position He knows
that he must be grounded In the
principles of thrift or he would not
have been able to secure his home,
and this means that he Will probably
be careful with the firms funds.
Renters Have Little Status.
Renters are regarded as fioaters and
often have little status socially. There
Is no question that the home owner
enjoys more social prestige than the
renter. If you move into new com
munity and buy your home, no matter
how modest, the people living there