RENT
Should You Buy or Rent?
The most comprehensive analysis to help you decide.
How long will you stay?
1 yr5 yr10 yr20 yr30 yr
7years
This is the typical break-even range for most markets.
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Other Costs
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Ongoing Costs
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Maintenance Budget
Industry standard is 1-2% of home value annually. Many first-time buyers underestimate this.
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= $6,000/year ($500/month)
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Standard Deduction: $14,600
We'll calculate if itemizing benefits you.
Investment Assumptions
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Renting saves you $112K
Over your 7-year horizon
Renting
Monthly Cost$2,167
Total Rent Paid$198K
Investment Portfolio$275K
Final Wealth$275K
Buying
Monthly Cost$3,379
Cash Required$92K
Home Equity$163K
Final Wealth$163K
Key Takeaways
- Buying never catches up to renting in this scenario.
- You'll save $3,374/year from the mortgage interest deduction.
- Buying builds $28K in equity from principal payments, plus $92K from appreciation.
- Renting wins in 12 of 12 scenarios tested.
View assumptions used
Time horizon:7 years
Monthly rent:$2,000
Home price:$400,000
Down payment:20.0%
Interest rate:7.0%
Home appreciation:3.0%/yr
Stock returns:7.0%/yr
Rent increase:3.0%/yr
Renting Wins... But There's a Third Option
What if you could get the best of both worlds?
House hacking lets you live cheaper than renting while building equity like buying. It's like renting with training wheels for real estate investing.
Your Monthly Cost
$2,318
vs $3,379 buying alone
7-Year Wealth
$212K
+$49K vs regular buying
Rental Income
$1,800/mo
From your other unit
The House Hack Calculator shows exactly how much you could save