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Housing Analysis

Rent vs. Buy — see which makes you richer, and when.

$
3.0%

Historical US average ~3%/yr

$
20.0% — $80K

20%+ avoids PMI

Verdict

Rent

by $48K over 10yr

Break-even

Never

renting stays ahead

Monthly Δ

+$872.62

more to own vs rent

Opp. Cost

$181K

down+closing if invested 10yr

Net Worth Over Time

Initial Monthly Breakdown

Buy — $2,872.62/mo
Principal & Interest: $2,022.62
Property Tax: $366.67
Insurance: $150.00
Maintenance: $333.33
Rent — $2,000.00/mo

True Cost Over 10 Years

Total Paid (buying)

down + closing + all monthly costs

$453,116.23

Home Sale Proceeds

sale at 3.5%/yr growth, net of 6.0% fees

+$530,385.13

Net Cost of Buying

total paid minus sale proceeds

-$77,268.90

Total Rent Paid

at 3.0%/yr rent growth

$279,482.84

You save buying

$356,751.74

Decision Insights

Renting comes out ahead by $48K over 10 years.

Buying never overtakes renting within 10 years at these assumptions.

Your monthly cost is $872.62 higher buying vs renting — that extra cash builds equity.

Market returns (7.0%) significantly exceed home appreciation (3.5%) — the renter's investment portfolio benefits.

Key Numbers

Loan Amount

$320K

Down Payment

$80K

Closing Costs

$12K

Mortgage P&I

$2,022.62/mo

Buy Net Worth

$259K

Rent Net Worth

$307K