A University of Georgia study released Thursday says online rent vs. buy calculators that lure apartment dwellers into buying homes with promises of big savings may underestimate hidden expenses and set up low-income families for foreclosure.
The study by housing and consumer economic assistant professor Russell N. James III found online rent vs. buy calculators often encourage renters to invest in home ownership, with foretold savings and tax benefits in his test series of $700 to more than $61,000.
But James found fewer than 5 percent of families earning $40,000 a year benefited from mortgage tax deductions. Meanwhile, the report found those families would likely pay less for water and other services in an apartment building, where there often are bulk service discounts.
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