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Buy vs Rent
The math everyone gets wrong. Compare net worth in 10 years across both paths.
Buy scenario
$650,000
$200,000$2,000,000
$130,000
$32,500$325,000
5.25 %
110
3.5 %/yr
08
Rent scenario
$2,400
$500$6,000
7.0 %/yr
112
10 yrs
330
buy wins
over 10 years, by about $17,779 in net worth
Winner
Buying
Net worth after 10 yrs
$529,257
Avg monthly
$4,118
Total spent
$624,181
Renting + investing
Net worth after 10 yrs
$511,478
Avg monthly
$2,719
Total spent
$326,338
Net worth over time
Buy (equity) Rent (investments)
Things this model doesn't price in: closing costs, land transfer tax, insurance, the value of "moving freely" as a renter, the value of "pride of ownership" and stability as an owner, and your specific local market dynamics.