The Biggest Purchase of Your Life

Common wisdom says: "Rent is simple. Buying is an investment." But mathematically, it's distinctively complex.

The Case for Buying

1. Forced Savings: Paying down a mortgage प्रिंसिपल is essentially saving money in an illiquid asset.
2. Leverage: You can control a $500k asset with only $100k down. If the home appreciates 5%, your ROI is 25%.
3. Stability: No landlord can kick you out.

The Case for Renting

1. The Hidden Costs of Owning: Property tax, maintenance (1% rule), insurance, and HOA fees. These are "throwaway" costs just like rent.
2. Opportunity Cost: If you took that $100k down payment and invested it in the S&P 500 (avg 8-10% return), it might outperform the house appreciation (avg 3-4% real return).
3. Mobility: You can move for a better job instantly.

The Verdict

Buying is not always better financially. It is a lifestyle choice.

• Buy if you plan to stay for 7+ years and crave stability.
• Rent if you value flexibility and can discipline yourself to invest the difference.

Use our Mortgage Calculator to run your own numbers, including the "Unrecoverable Costs" of both renting and buying.