Copyright 1995, 2001, 2003, 2004, 2006 by Edward A. Chang
All rights reserved.
This analytical model was developed in connection with the personal finance bestseller, Get a Financial Life, and is available through my Spreadsheets page.
| Annual Cash Flows | ||||||
| Year | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 |
| 1 | 2 | 3 | 4 | 5 | Sale Date | |
| TAXABLE INCOME ADJ. | ||||||
| Points | ($400) | $0 | $0 | $0 | $0 | $0 |
| Standard Tax Deduction | $7,950 | $8,189 | $8,434 | $8,687 | $8,948 | $0 |
| Non-Prop. Itm. Ded. | ($1,000) | ($1,030) | ($1,061) | ($1,093) | ($1,126) | $0 |
| Property Taxes | ($1,100) | ($1,133) | ($1,167) | ($1,202) | ($1,238) | $0 |
| Interest | ($4,573) | ($4,512) | ($4,448) | ($4,380) | ($4,308) | $0 |
| Total Tax. Inc. Adj. | $0 | $0 | $0 | $0 | $0 | $0 |
| Tax Rate | 27.0% | 26.0% | 26.0% | 25.0% | 25.0% | 25.0% |
| TAX SAVINGS | $0 | $0 | $0 | $0 | $0 | $0 |
| BEFORE-TAX BUY FLOWS | ||||||
| Down Payment | ($20,000) | $0 | $0 | $0 | $0 | $0 |
| Points | ($400) | $0 | $0 | $0 | $0 | $0 |
| Closing Costs (w/o pts.) | ($4,000) | $0 | $0 | $0 | $0 | $0 |
| Property Taxes | ($1,100) | ($1,133) | ($1,167) | ($1,202) | ($1,238) | $0 |
| Debt Service | ($5,602) | ($5,602) | ($5,602) | ($5,602) | ($5,602) | ($74,210) |
| Home Utilities | ($1,800) | ($1,854) | ($1,910) | ($1,967) | ($2,026) | $0 |
| Home Maintenance | ($1,250) | ($1,288) | ($1,326) | ($1,366) | ($1,407) | $0 |
| Home Insurance | ($500) | ($500) | ($500) | ($500) | ($500) | $0 |
| Sale Proceeds | $0 | $0 | $0 | $0 | $0 | $121,665 |
| Sale Costs | $0 | $0 | $0 | $0 | $0 | ($6,083) |
| AFTER-TAX BUY COSTS | ($34,652) | ($10,377) | ($10,505) | ($10,637) | ($10,773) | $41,372 |
| APT. RENT & UTILS. | ($9,600) | ($9,888) | ($10,185) | ($10,490) | ($10,805) | $0 |
| NET DIFFERENCE | ($25,052) | ($489) | ($320) | ($147) | $32 | $41,372 |
| FUTURE VALUE | ($29,971) | ($565) | ($357) | ($158) | $33 | $41,372 |
| PRESENT VALUE | ($25,052) | ($471) | ($298) | ($132) | $27 | $34,417 |
| FV | $10,354 | |||||
| PV | $8,491 |