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Should you rent or buy? Compare the true costs of renting vs. buying a home over time. See which option builds more wealth based on your specific situation.
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The answer depends on your financial situation, how long you plan to stay, local market conditions, and personal preferences. Buying builds equity and offers stability, while renting provides flexibility and lower upfront costs. Use our calculator to compare the true costs.
Generally, buying makes more financial sense if you plan to stay at least 5-7 years. This gives you time to build equity and offset closing costs. Shorter stays may favor renting due to transaction costs.
Beyond the mortgage, factor in: property taxes, homeowners insurance, HOA fees, maintenance (1-2% of home value annually), repairs, utilities, and potential assessment fees. These can add 30-50% to your monthly housing costs.
Not necessarily. While rent does not build equity, homeowners also spend money on interest, taxes, insurance, and maintenance that does not build equity. The key is comparing total costs and investing any savings from renting.
The 5% rule suggests multiplying a home price by 5% and dividing by 12 to get a breakeven rent. If your rent is lower, renting may be better. Example: a $400,000 home = $1,667/month breakeven. If rent is $1,500, renting wins financially.