Should I Rent or Buy Right Now?
The honest answer isn't always "buy." Compare the true total cost of renting vs. owning over any time horizon — including equity, appreciation, and what happens to your down payment if you invest it instead.
Your Situation
How long you plan to stay: 7 years
Buying Scenario
Home Price$420,000
$
Down Payment$84,000 (20%)
$
Interest Rate6.875%
%
Property Tax Rate1.20%
%
Home Appreciation Rate3.5% / yr
%
Annual Maintenance1.00%
%
Renting Scenario
Current Monthly Rent$2,200
$
Annual Rent Increase3.0% / yr
%
Investment Return (on down payment)6.0% / yr
%
Financial Advantage
Buying wins after 7 years
$48,200
net financial advantage of buying vs. renting after 7 years
Buying
$64K
net wealth after 7 yrs
Home equity$182K
Total costs paid-$228K
Appreciation gain+$110K
Renting
$16K
net wealth after 7 yrs
Investment growth$126K
Total rent paid-$194K
Remaining down pmt+$84K
Yearly Comparison
Buy — monthly housing cost$2,872
Rent — current monthly$2,200
Monthly cost difference+$672
Projected home value$530K
CTA
CTA
Roxy Miles
NMLS#2464939
Complex income specialist.
Former financial advisor.
865.424.7997
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