🏠 Rent vs Buy Analysis

10-year financial comparison for $970,000 home

Overview

Monthly Costs

Metric	Buying	Renting	Difference
Initial Cost	$194,000	$3,200	-$190,800
Monthly Payment	$5,840	$3,200	-$2,640
Total 10-Year Cost	$694,000	$384,000	-$310,000
Equity Built	$285,000	$0	+$285,000
Net Position	-$409,000	-$384,000	-$25,000

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Key Insight

Over 10 years, renting saves $25,000 in total cash outflow. However, buying builds $285,000 in equity through mortgage principal payments and potential appreciation.

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Important Considerations

This analysis assumes 3% annual rent increases, 4% mortgage rate, and 1% property tax. Actual results may vary based on market conditions, maintenance costs, and home appreciation rates.

Analysis based on 20% down payment ($194,000), 30-year mortgage at 4% interest, 1% property tax, 0.5% insurance, and 3% annual rent increase.