The internet is full of rent-vs-buy debates. The math comes down to a single number — and a handful of caveats.
This used to be a back-of-the-envelope job. Now it is one tap, but the logic has not changed. The internet is full of rent-vs-buy debates. The math comes down to a single number — and a handful of caveats.
Total annual cost of owning ≈ home price × 5% (property tax + maintenance + cost of capital). If rent is below 5% of price, renting wins.
Long stay (>7 years), high rent inflation, equity buildup via principal payments, tax deductions.
Buying and selling within 3 years usually loses money after closing costs and realtor fees.
Does buying always beat renting eventually? No — opportunity cost of down-payment invested in the market often beats home appreciation.
What if I want stability? That has real value. Just don't pretend it's a pure financial decision.
If you only remember one thing from this post, make it that the inputs matter more than the calculator.