Buy vs rent argument

It's usually better to buy than to rent, but not in every case, and usually not right away. It usually takes at least a few years for buying to become a better deal than renting. That's because there are some big up-front costs when buying, and your monthly payments from buying are generally higher. However, those payments are building equity in your home -- you're "keeping" some of what you're paying. Also, while you're making your payments, your home generally appreciates in value. After some number of years the equity you've paid into your home plus the appreciation will usually overcome the extra money you had to pay to get into the home. That's what this calculator tells you.

Also remember that "better" and "worse" are subjective terms. If it costs $25,000 more over 30 years to buy a home rather than to rent, you still might consider buying to be a "better" deal because it's worth the small difference in cost (less than $1000 a year) for the pride and comfort of owning your own home. The calculator simply reports results based on some assumptions; it doesn't tell you what you should do. Only you can make that decision.

More resources

• https://michaelbluejay.com/house/investment.html