Total rent cost
$0
Total buy cost
$0
Break-even year
-
Verdict
-
Simplified comparison. Assumes a fixed-rate mortgage and steady rent growth. Ignores property tax, insurance, maintenance, home appreciation and investment returns on the down payment.
Frequently asked questions
What is the break-even year?
The first year when everything you have spent on buying (down payment plus mortgage payments) becomes less than everything you would have spent on rent.
What does this comparison leave out?
Property tax, insurance, maintenance, HOA fees, home price appreciation and what your down payment could earn invested. It is a simplified starting point, not the full picture.
Does buying always win eventually?
No. If rent is low, rent growth is slow, or the mortgage rate is high, renting can stay cheaper for the whole period. The verdict above says so honestly.
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