Renting vs Buying Analysis
Compare the financial impact of renting versus buying with different down payment scenarios
Your Information
Buying is the Smart Financial Move!
You'll be $78,312 better off compared to renting after 5 years.
Your Wealth After 5 Years
$157,526
Built Through Home Ownership
Your Home Value
$579,637
Total Renting Cost
-$171,394
💡 While renters have spent $171,394 with nothing to show for it, you've built $157,526 in equity!
Down Payment
$25,000
5% of home price
Monthly Payment
$3,760
vs $2,800 rent
5-Year Comparison
| Year | Renting Cost | Owning Cost | Home Value | Equity | Net Advantage |
|---|---|---|---|---|---|
| 1 | -$33,600 | -$70,122 | $515,000 | $49,572 | +$13,050 |
| 2 | -$67,536 | -$115,243 | $530,450 | $75,072 | +$27,365 |
| 3 | -$101,811 | -$160,365 | $546,364 | $101,538 | +$42,985 |
| 4 | -$136,429 | -$205,487 | $562,754 | $129,009 | +$59,952 |
| 5 | -$171,394 | -$250,608 | $579,637 | $157,526 | +$78,312 |
Benefits of Buying
- Build equity and wealth over time
- Fixed mortgage payment (stability)
- Property appreciation potential
- Freedom to renovate and customize
- Tax benefits and deductions
Benefits of Renting
- Lower upfront costs (no down payment)
- Flexibility to move easily
- No maintenance responsibilities
- Predictable monthly expenses
- Less financial risk
Quick Comparison Summary
Minimum (5%)
Down: $25,000
Net Advantage vs Renting
+$78,312
Conservative (10%)
Down: $50,000
Net Advantage vs Renting
+$84,297
Traditional (20%)
Down: $100,000
Net Advantage vs Renting
+$96,268
This is a simplified analysis. Contact Eric for a personalized financial consultation.