Rent vs. Buy Example One
35' Indoor Dry Slip

Your dry slip purchase breaks even
after 1.2 years.

This is based on your slip's equity minus a 5.00% sales commission paid to brokers or real estate agents when you sell your slip. It also assumes your slip will appreciate at 8.00% per year and you have an income tax rate of 34.00%.

If you cannot remain in your slip for at least 1.2 years you should consider continuing to rent. We calculated your breakeven point by examining how long it would take to create enough equity in your slip to exceed the value of investing your cash on hand.

We also accounted for differences in your monthly rent and boat slip payments. If your rent payment is less than your net boat slip payment, we add that monthly savings to your investment. If your boat slip payment is less than your rent payment we subtract that amount from your investment. You may notice that on the schedule viewed with the link below, the investment value can be reported as negative. This happens if your boat slip payment is significantly lower than your rent payment. It illustrates that if you continue to rent the extra cost of renting would, in effect, use up your cash on hand.

Loan Information
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For $595.18 and a down payment of $18,000 you can purchase an indoor boat slip with a price of $78,000. This is for a 20 year mortgage at 7.000% in the amount of $60,000. Total closing costs for this loan are estimated at $2,000.00.

Your current monthly rent is $425. The expected inflation rate of 3.75% annually was used to estimate future rent and property taxes.

The rate of return used for open market investments was 10.00% per year.

Your $595.18 monthly payment consists of:  
    • Principal & Interest $465.18
    • Taxes of $130.00

Closing costs of $2,000.00 consists of:
    • Amount paid of points $600.00
    • Origination fee $600
    • Other closing costs $800

If you started with $20,000 Cash on Hand and invested it at 10% annual return, you investment at the end of the 20 year term would have a value of $124,463

You would have spent $146,247 to rent the slip over the same term and would not have any equity in it..

Investing the same $20,000 into the purchase of an indoor boat rack - your equity in the slip you own will be worth $345,377. A sales commission and property taxes have already been deducted from this amount.

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Rent vs. Buy Example Two
50' Deep Water Wet Slip

Your wet slip purchase breaks even
after 1.2 years.

This is based on your slip's equity minus a 5.00% sales commission paid to brokers or real estate agents when you sell your slip. It also assumes your slip will appreciate at 8.00% per year and you have an income tax rate of 34.00%.

If you cannot remain in your slip for at least 1.2 years you should consider continuing to rent. We calculated your breakeven point by examining how long it would take to create enough equity in your slip to exceed the value of investing your cash on hand.

We also accounted for differences in your monthly rent and boat slip payments. If your rent payment is less than your net boat slip payment, we add that monthly savings to your investment. If your boat slip payment is less than your rent payment we subtract that amount from your investment. You may notice that on the schedule viewed with the link below, the investment value can be reported as negative. This happens if your boat slip payment is significantly lower than your rent payment. It illustrates that if you continue to rent the extra cost of renting would, in effect, use up your cash on hand.

Loan Information
View Payment Analysis Page

For $1145.70 and a down payment of $46,633 you can purchase an indoor boat slip with a price of $175,000. This is for a 30 year mortgage at 7.000% in the amount of $128,367. Total closing costs for this loan are estimated at $3,367.35.

Your current monthly rent is $750. The expected inflation rate of 3.75% annually was used to estimate future rent and property taxes.

The rate of return used for open market investments was 10.00% per year.

Your $1,145.70 monthly payment consists of:     
    • Principal & Interest $854.03
    • Taxes of $291.67

Closing costs of $3,367.35 consists of:
    • Amount paid of points $1,283.67
    • Origination fee $1,284
    • Other closing costs $800

If you started with $50,000 Cash on Hand and invested it at 10% annual return, you investment at the end of the 20 year term would have a value of $1,028,855

You would have spent $484,193 to rent the slip over the same term and would not have any equity in it..

Investing the same $50,000 into the purchase of a deep water boat slip - your equity in the slip you own will be worth $2,205,752. A sales commission and property taxes have already been deducted from this amount

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