Is buying always better than renting over the long term?

Not necessarily. In high-priced markets, the high cost of property taxes, maintenance, and interest can outweigh home appreciation, especially if you can achieve higher returns by investing your down payment in the stock market.

What is the opportunity cost factor?

Opportunity cost refers to the potential gains you miss out on by choosing one alternative over another. In this case, it represents the investment returns you could have earned if you rented and invested your down payment capital.

Get Started

Real Estate Strategy

Rent vs. Buy

Don't guess with your largest financial decision. Factor in maintenance, appreciation, and market returns to find your break-even point.

Ownership Inputs

Configure the costs associated with buying and holding.

Purchase Price

Down Payment

Rate (%)

Term (Y)

Tax (%)

Maint (%)

Time Horizon: 10 Years

Rental & Opportunity

Factor in rent costs and investment potential.

Starting Rent

Investment Return (%)

Buy is Better

After 10 years of analysis

Net Benefit

$25975.62

Monthly Ownership$3287.94

Projected Equity$360915.87

*This analysis includes property taxes, maintenance, home appreciation, and the opportunity cost of your down payment.

Buying Profile

Asset Wealth

Renting Profile

Liquid Markets

The Opportunity Cost

Capital Mobility

When you rent, your down payment is liquid. If you invest $100k in an index fund averaging 8% vs. a home appreciating at 3%, the stock market often wins in pure dollar terms over short periods.

Asset Leverage

Buying allows you to leverage your capital. You get 100% of the appreciation on a house even if you only put 20% down. This "leverage" is why real estate is a powerful wealth builder.

Unmasking Hidden Costs

The 1% Rule

Budget 1% of the purchase price annually for maintenance. It's not a suggestion; it's a structural reality.

Transaction Friction

Buying (2-5%) and Selling (5-6%) costs mean you start in a "hole" that only time and appreciation can fill.

Pro Insight

"In many metropolitan areas, if you plan to stay for less than 5 years, renting is almost always more profitable due to high transaction costs."

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