Compare Total Cost: Renting vs Buying
-
🏠 Total Buy Cost
-
🔑 Total Rent Cost
-
-
Key Factors
What's included in buy cost?
Mortgage principal + interest, property tax (1.2%), insurance (0.6%), maintenance (1%), closing costs, minus home appreciation gain. Does NOT include selling costs (6% realtor fee). If you sell at end, that reduces net gain.
When does buying make sense?
Buying makes sense when: (1) You'll stay 5+ years (break-even point), (2) Interest rates are reasonable, (3) Home appreciation matches or beats stock market (3-4%), (4) You have stable income for 30-year mortgage, (5) You want forced savings via equity building.