Financial Verdict
Renting Wins
Renting builds $166,838 more wealth over 10 years
*Includes home equity vs. investment portfolio growth
Break-Even PointNever
Avg Monthly (Buy)$3,670
Avg Monthly (Rent)$2,886
Wealth Creation (Buying)
Home Appreciation
+$240,122
Growth in value
Principal Paid
+$160,895
Debt paid down
Total Equity at Sale
$401,018
Cash in Pocket
$356,610
(After selling costs)
Sunk Costs Comparison
"Sunk costs" are expenses you never get back (Rent, Interest, Taxes, Insurance).
| Category | Buying | Renting |
|---|---|---|
| Initial Costs (Upfront) | $109,500 | $4,500 |
| Recurring Costs (Total over 10 yrs) | $440,398 | $346,316 |
| Home Equity (After Sale Costs) | -$356,610 | -$0 |
| Investment Portfolio | -$0 | -$324,367 |
| TOTAL NET COST | $193,287 | $26,449 |
*Calculations assume any monthly savings are invested at 6% annual return.
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