Table 16-5 shows the components of the first-year home dividend for the home in Fishers, Indiana, both as an owner-occupied home or rental property.
Here is where these numbers came from.
Rent. It cost $1,250 a month ($15,000 a year) to rent a comparable house. This is the rent savings for a homeowner, the rental income for a landlord.
Mortgage payment. In the summer of 2005, the interest rate on a thirty-year, fixed-rate mortgage was 5.7 percent, and the mortgage payments were $626.83 a month, or $7,522 a year.
Property tax. In Indiana, ...