Buy vs. Rent
Buying wins long-term in most markets if you stay 5+ years and don't pay over rent equivalent. But mortgage interest, property tax, insurance, maintenance, and opportunity cost on the down payment add up fast. Run the actual numbers.
| Buy | Rent | |
|---|---|---|
| Monthly cost | Predictable, capped (fixed-rate) | Subject to annual increases |
| Maintenance | ~1% of home value per year | Landlord's problem |
| Down payment / deposit | 5-20% of home price | 1-2 months rent |
| Tax benefits | Mortgage interest + property tax (if itemizing) | None |
| Building equity | Principal payments + appreciation | None |
| Flexibility to move | Sell or rent out — 1-3 months | End lease — typically 30 days |
| Hidden costs | Closing $8-15K, selling 6-8% commission | Renters insurance, parking, sometimes pet deposit |
| Break-even (years) | Typically 3-5 years | N/A — every year is fully consumed |
Choose Buy if
- You'll stay in the home 5+ years.
- Your monthly buy cost (PITI + maintenance) is within 25% of equivalent rent.
- You have a 6-month emergency fund AFTER the down payment.
- You value control and customization.
Choose Rent if
- You're likely to move within 3 years.
- You're in a high-cost area where buying costs 2x equivalent rent.
- You'd rather invest the down payment in index funds for higher returns.
- You value flexibility — career change, life change, geographic move.
Run the numbers yourself
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