52 Sidney Bay Price Analysis - Makes sense to Rent, not to Own

I have completed a rent versus buy analysis on 52 Sidney Bay Drive in Crystal Cove. Listed for sale at $2,895,000, this home recently rented for $6,000 per month.

The result? Renting wins hands down, costing $5,103 per month. Buying is a real disaster - it could cost $20,478 PER MONTH.

And this is a conservative estimate because it assumes only a 4.1% drop in the home's value over the next 12 months. If this drop in home value turns out to be in my opinion a more realistic 8%, then the cost of owning in the next year becomes a whopping $30,000 PER MONTH.

Of course, one interpretation of this analysis is that this home is hopelessly overpriced. And I agree with that.

Here's the backup data:

Rent		Own
Rent Payment	-$6,000	Mortgage Payment (20% down)	-$12,433
Monthly Return on Unspent Downpayment	$897	Principle	$2,800
Total Monthly Cost	-$5,103	Mort Tax Benefit	$2,040
		Insurance	-$200
		Maintenance	-$200
		Association Dues	-$615
		Property Taxes	-$3,016
		Prop Tax Tax Bene	$1,146
		Decline in home value	-$10,000
		Total Monthly Cost	-$20,478