Traditional wisdom historically leans heavily towards buying, with many people viewing rent as throwing money away, while seeing homeownership as a non-negotiable life objective and an indicator of personal success.
An opposing perspective has recently started gaining traction, especially among younger generations and personal finance experts. The claim is that renting might actually be superior from a financial standpoint since you can invest the difference - arguing that many investments currently offer higher and more stable returns than real estate.
The goal of this tool is to ultimately answer the question:
What investment return do you need as a renter to come out ahead?
...and to explore any factors that the answer might depend on.
Mortgage, taxes, maintenance, and insurance for buyers. Rent and renter's insurance for renters.
Whoever pays less each month invests the difference (ex: renters invest their down payment equivalent).
Considering the total net liquidation worth of both scenarios.
This model provides comparative analysis and should not be considered comprehensive financial advice.
Consult professionals for personalized guidance.