If I hadn't purchased my condo, I'd be living in that same apartment complex today so its a really good benchmark to use to what I would be paying for had I not purchased my condo.
My old apartment complex is also pretty much an equal commute to my work and while the apartment is smaller in terms of square footage, it makes that up in the fact that it has a single car garage.
If you remember from last year, SCB and I theoretically "moved" into a slightly bigger one bedroom unit with the "help" of our friends (so no moving costs) that matched our condo's square footage a bit better since our home is 753 square feet and the apartment would be 672 square feet. For 2013, we will assume that we will stay in that unit and not move to insure our security deposit of $400 would be returned (a deal that they have if you stay in the same unit for at least 2 years).
Last year that unit rented for $1,225.00 a month... This year its going for $1,240.00. They have another identical unit with the same floor plan renting for $1,290.00 in a better location, but since they also offer a slightly larger one bedroom with 719 square feet for the same price in a poorer location, we will go with the $1,240.00 rental price and assume a one year lease to lock in the rate till the end of 2013.
We will also assume the washer and dryer we hypothetically purchased last year are still happily functioning so we can remove that from our expenses since they would have been paid off from that zero percent loan I would have "qualified" for.
Costs Associated with Apartment for 2013
FYI- I don't include electric bills since i'd have to pay for those at either place, but my HOA fee includes water, gas, and trash so i'll account for them here using the fees I used to pay.
In June of 2013 we welcomed Roxy into our family. The apartment complex charges a $400 pet deposit and a $35 monthly pet rent.
New monthly average: $1,406.41, New Annual: $16,977.00
**with Pet Deposit & rent from June-Dec.
If we add additional principle to the loan, we count it as an expense at the end of the year and subtract it from what we saved by renting because we benefit from it in added equity. Additionally, we also track any expense we wouldn't have in an apartment and count it against the amount we "save" by not renting at the end of the year.
New monthly average post refinance: $1,082.32 | New expected annual: $12,987.88