Glossary

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Estimated Net Costs of Buying
Before investing in the purchase of a home, buyers want to know if the purchase is likely to be a smart investment. One analysis that can be utilized during this process is the estimated net costs of buying. This calculation is another way of understanding what the bottom line will be when purchasing a particular property. To calculate the estimated net costs of buying, one simply deducts the estimated tax savings and projected increase in equity from the gross cost of buying a home. Ultimately, one is considering the projected savings before arriving at the final cost of buying real estate. Buyers can calculate the estimated net costs of buying on the homes that are seriously being considered. Then the final numbers can be used to decide between several homes.