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<DIV>
<H1>Spending Smarter - Rent or Buy a Home Calculator</H1>
<DIV>

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<P>Should you rent or buy a home and what are the long-term costs? On the one hand, you're tired of your landlord. On the other hand, buying a home likely means borrowing a lot of money. As well, when buying a home you must make a down payment, money that could otherwise be invested or put into savings. What should you do?</P>
<FORM name="BoRForm" method="post" action="" id="BoRForm">
<DIV>
<H2>Your Information</H2>
<P>(Modify the values presented below according to your needs)</P>
<TABLE border="0" cellspacing="0" cellpadding="0" width="578">
<TBODY>
<TR>
<TD><LABEL for="Funds">Funds available for real estate and/or investment:</LABEL>
<A href="./index.php?option=com_content&view=article&id=35&Itemid=53#a1"><IMG src="./images/clbcalcquestion.gif" alt="" width="20" height="22" align="bottom"></A></TD>
<TD>$</TD>
<TD><INPUT type="text" onChange="updateBoR()" size="12" name="Funds" id="Funds" value="20000"></TD>
</TR>
<TR>
<TD><LABEL for="Income">Disposable monthly income available for housing or investing:</LABEL>
<A href="./index.php?option=com_content&view=article&id=35&Itemid=53#a2"><IMG src="./images/clbcalcquestion.gif" width="20" height="22" alt=""></A></TD>
<TD>$</TD>
<TD><INPUT type="text" onChange="updateBoR()" size="12" name="Income" id="Income" value="1375"></TD>
</TR>
<TR>
<TD><LABEL for="inflation">Estimate of the long-term inflation rate:</LABEL>
<A href="./index.php?option=com_content&view=article&id=35&Itemid=53#a3"><IMG src="./images/clbcalcquestion.gif" width="20" height="22" alt=""></A></TD>
<TD>
<TD><INPUT type="text" onChange="updateBoR()" size="12" name="inflation" id="inflation" value="2.5">
%</TD>
</TR>
<TR>
<TD><LABEL for="portfolio_return">Estimate of after-tax return on portfolio investments:</LABEL>
<A href="./index.php?option=com_content&view=article&id=35&Itemid=53#a4"><IMG src="./images/clbcalcquestion.gif" width="20" height="22" alt=""></A></TD>
<TD></TD>
<TD><INPUT type="text" onChange="updateBoR()" size="12" name="portfolio_return" id="portfolio_return" value="7">
%</TD>
</TR>
<TR>
<TD colspan="3">Input related to the purchased residence:</TD>
</TR>
<TR>
<TD><LABEL for="mortgage_rate">Annual equivalent (APR) mortgage rate:</LABEL>
<A href="http://stoichsolutions.com/lindawang.ca/index.php?option=com_content&view=article&id=35&Itemid=53#a5"><IMG src="./images/clbcalcquestion.gif" width="20" height="22" alt=""></A></TD>
<TD></TD>
<TD><INPUT type="text" onChange="updateBoR()" size="12" name="mortgage_rate" id="mortgage_rate" value="7.25">
%</TD>
</TR>
<TR>
<TD><LABEL for="down_payment">Down payment:</LABEL>
<A href="http://stoichsolutions.com/lindawang.ca/index.php?option=com_content&view=article&id=35&Itemid=53#a6"><IMG src="./images/clbcalcquestion.gif" width="20" height="22" alt=""></A></TD>
<TD>$</TD>
<TD><INPUT type="text" onChange="updateBoR()" size="12" name="down_payment" id="down_payment" value="15000"></TD>
</TR>
<TR>
<TD><LABEL for="months">Months until maturity, amortization period (max 360):</LABEL>
<A href="http://stoichsolutions.com/lindawang.ca/index.php?option=com_content&view=article&id=35&Itemid=53#a7"><IMG src="./images/clbcalcquestion.gif" width="20" height="22" alt=""></A></TD>
<TD></TD>
<TD><INPUT type="text" onChange="updateBoR()" size="12" name="months" id="months" value="360">
&nbsp;months</TD>
</TR>
<TR>
<TD><LABEL for="Buy_Expenses">Monthly expenses for purchased residence:</LABEL>
<A href="http://stoichsolutions.com/lindawang.ca/index.php?option=com_content&view=article&id=35&Itemid=53#a8"><IMG src="./images/clbcalcquestion.gif" width="20" height="22" alt=""></A></TD>
<TD>$</TD>
<TD><INPUT type="text" onChange="updateBoR()" size="12" name="Buy_Expenses" id="Buy_Expenses" value="400"></TD>
</TR>
<TR>
<TD><LABEL for="real_estate_return">Expected (after-tax)return on real estate:</LABEL>
<A href="http://stoichsolutions.com/lindawang.ca/index.php?option=com_content&view=article&id=35&Itemid=53#a9"><IMG src="./images/clbcalcquestion.gif" width="20" height="22" alt=""></A></TD>
<TD></TD>
<TD><INPUT type="text" onChange="updateBoR()" size="12" name="real_estate_return" id="real_estate_return" value="3">
%</TD>
</TR>
<TR>
<TD><LABEL for="market_value">Market value of the purchased residence:</LABEL>
<A href="http://stoichsolutions.com/lindawang.ca/index.php?option=com_content&view=article&id=35&Itemid=53#a10"><IMG src="./images/clbcalcquestion.gif" width="20" height="22" alt=""></A></TD>
<TD>$</TD>
<TD><INPUT type="text" onChange="updateBoR()" size="12" name="market_value" id="market_value" value="150000"></TD>
</TR>
<TR>
<TD colspan="3"><br/><h2>Input related to the rented residence:</h2></TD>
</TR>
<TR>
<TD><LABEL for="rent">Monthly rent:</LABEL></TD>
<TD>$</TD>
<TD><INPUT type="text" onChange="updateBoR()" size="12" name="rent" id="rent" value="1000"></TD>
</TR>
<TR>
<TD><LABEL for="rent_expenses">Monthly expenses associated with the rental:</LABEL>
<A href="http://stoichsolutions.com/lindawang.ca/index.php?option=com_content&view=article&id=35&Itemid=53#a11"><IMG src="./images/clbcalcquestion.gif" width="20" height="22" alt=""></A></TD>
<TD>$</TD>
<TD><INPUT type="text" onChange="updateBoR()" size="12" name="rent_expenses" id="rent_expenses" value="200"></TD>
</TR>
</TBODY>
</TABLE>
</DIV>
<DIV><span class="art-button-wrapper"><span class="l"> </span><span class="r"> </span><input type="Reset" name="Reset" class="button art-button" value="Reset" /></span> <span class="art-button-wrapper"><span class="l"> </span><span class="r"> </span><input type="button" onClick="updateBoR()" name="Submit1" class="button art-button" value="Submit" /></span> </DIV>
<DIV>
<H2>Your Result</H2>
<P>Total Wealth, Real Dollars<A href="http://stoichsolutions.com/lindawang.ca/index.php?option=com_content&view=article&id=35&Itemid=53#a12"><IMG src="./images/clbcalcquestion.gif" width="20" height="22" alt=""></A></P>
<P>If savings are all reinvested</P>
<TABLE border="0" cellspacing="0" cellpadding="0" width="578">
<TBODY>
<TR>
<TD colspan="2">Years</TD>
<TD colspan="2">Buy House</TD>
<TD colspan="2">Rent House</TD>
<TD>Difference</TD>
</TR>
<TR>
<TD><INPUT type="hidden" size="2" name="H28" value="5">
5</TD>
<TD>$</TD>
<TD><INPUT type="text" name="I28" size="12" value="58,180.11"></TD>
<TD>$</TD>
<TD><INPUT type="text" size="12" name="J28" value="40,510.31"></TD>
<TD>$</TD>
<TD><INPUT type="text" size="12" name="K28" value="17,669.80"></TD>
</TR>
<TR>
<TD><INPUT type="hidden" size="2" name="H29" value="10">
10</TD>
<TD>$</TD>
<TD><INPUT type="text" size="12" name="I29" value="106,112.13"></TD>
<TD>$</TD>
<TD><INPUT type="text" size="12" name="J29" value="69,277.08"></TD>
<TD>$</TD>
<TD><INPUT type="text" size="12" name="K29" value="36,835.05"></TD>
</TR>
<TR>
<TD><INPUT type="hidden" size="2" name="H30" value="15">
15</TD>
<TD>$</TD>
<TD><INPUT type="text" size="12" name="I30" value="166,879.23"></TD>
<TD>$</TD>
<TD><INPUT type="text" size="12" name="J30" value="109,623.96"></TD>
<TD>$</TD>
<TD><INPUT type="text" size="12" name="K30" value="57,255.27"></TD>
</TR>
<TR>
<TD><INPUT type="hidden" size="2" name="H31" value="30">
30</TD>
<TD>$</TD>
<TD><INPUT type="text" size="12" name="I31" value="476,822.56"></TD>
<TD>$</TD>
<TD><INPUT type="text" size="12" name="J31" value="356,899.31"></TD>
<TD>$</TD>
<TD><INPUT type="text" size="12" name="K31" value="119,923.25"></TD>
</TR>
</TBODY>
</TABLE>
<P>If savings are not reinvested</P>
<TABLE border="0" cellspacing="0" cellpadding="0" width="578">
<TBODY>
<TR>
<TD colspan="2">Years</TD>
<TD colspan="2">Buy House</TD>
<TD colspan="2">Rent House</TD>
<TD>Difference</TD>
</TR>
<TR>
<TD><INPUT type="hidden" size="2" name="H35" value="5">
5</TD>
<TD>$</TD>
<TD><INPUT name="I35" type="text" id="I35" value="123,112.08" size="12"></TD>
<TD>$</TD>
<TD><INPUT type="text" size="12" name="J35" value="75,182.83"></TD>
<TD>$</TD>
<TD><INPUT type="text" size="12" name="K35" value="47,929.25"></TD>
</TR>
<TR>
<TD><INPUT type="hidden" size="2" name="H36" value="15">
10</TD>
<TD>$</TD>
<TD><INPUT type="text" size="12" name="I36" value="215,622.04"></TD>
<TD>$</TD>
<TD><INPUT type="text" size="12" name="J36" value="113,049.17"></TD>
<TD>$</TD>
<TD><INPUT type="text" size="12" name="K36" value="102,572.87"></TD>
</TR>
<TR>
<TD><INPUT type="hidden" size="2" name="H37" value="15">
15</TD>
<TD>$</TD>
<TD><INPUT type="text" size="12" name="I37" value="333,972.98"></TD>
<TD>$</TD>
<TD><INPUT type="text" size="12" name="J37" value="169,987.14"></TD>
<TD>$</TD>
<TD><INPUT type="text" size="12" name="K37" value="163,985.84"></TD>
</TR>
<TR>
<TD><INPUT type="hidden" size="2" name="H38" value="30">
30</TD>
<TD>$</TD>
<TD><INPUT type="text" size="12" name="I38" value="957,777.57"></TD>
<TD>$</TD>
<TD><INPUT type="text" size="12" name="J38" value="577,912.58"></TD>
<TD>$</TD>
<TD><INPUT type="text" size="12" name="K38" value="379,864.99"></TD>
</TR>
</TBODY>
</TABLE>
</DIV>
</FORM>
<P><STRONG>Important notice:</STRONG> This calculator assumes that if you rent, you will invest all the money you would have used as a down payment. In addition, the calculator assumes that the money saved from renting relative to owning a home would also be invested. Many (perhaps even most) people may be tempted to spend rather than invest the savings. For those with less than iron self discipline, buying a home could constitute a form of forced savings.</P>
<SCRIPT type="text/JavaScript" src="./includes/buy_rent.js" xml:space="preserve"></SCRIPT>
</DIV>
</DIV>



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