Rent or Buy?
Introducing the Rent vs Buy Calculator
Should you buy or rent? This is a question most of us will likely face in our lives, whether buying a house makes more financial sense than renting a home. There is a way to understand the financial impact of buying vs. renting. The realtor.com® rent vs. buy calculator can help you calculate the net cost of buying a home versus the cost of renting over time.
Net costs compare the total amount of money you would be spending over time, minus the potential value you might receive if you someday sell the property. View the interactive graph and see what this looks like at different times, and how it compares if you were instead paying rent. From the tool, you’ll see that the amount of time you plan on keeping the home has a major impact. To get more personal, you can customize the advanced options to crunch more specific numbers and evaluate more specific scenarios. But keep in mind that a financial comparison is just one of many factors when deciding whether to rent or buy.
Rent vs Buy Calculator
This Rent vs Buy calculator compares the total cost over time of renting with the total cost of buying. It includes the most common expenses of buying and renting and takes into account how these expenses are changed over time by applying the rate of inflation, home price and rent appreciation rates, and the rate of return on the investments.
This sample graphic shows how this tool will calculator total net costs and how they change over time. The graph is interactive so you can click on any year in your results to a more detailed breakdown.
It also takes into account something known as lost opportunity costs, which is the return you could have earned by investing your money instead of spending it initially for costs like down payment or yearly. The calculator accounts the lost opportunity costs for all parts of the buying and renting scenarios.
Are you a former renter who recently graduated to a buyer? Or are you a renter hesitant to make that jump? Post your stories on the Patrick Parker Realty Facebook Page, Twitter Feed or on LinkedIn. Plus don’t forget to subscribe to the monthly Patrick Parker Realty email newsletter for articles like this one delivered straight to your inbox.