Should I rent or buy? This calculator does the complicated math for you by comparing the costs of renting vs. buying a house.
You will need to input several numbers so the calculator can accurately compare all the factors affecting renting versus buying (interest, property taxes, tax savings, appreciation, opportunity costs, closing costs, selling costs, etc.).
Finally, if you need help completing any field just click on that data entry box and instructions will appear in the area to the right so you know how to answer the questions.
How Much Does It Cost To Rent Vs. Buy A House?
Are you trying to decide whether you should rent or buy your home?
One important factor to consider is cost. But with so many variables entering the equation, it can be daunting to sit down and calculate everything by hand.
This rent vs. buy calculator makes the math easy so you can determine the total estimated cost of renting vs. buying. Simply provide the required inputs, compute your totals, and print out a detailed report!
As powerful as this renting versus buying calculator is, there are more factors to consider besides just financial cost.
There are many advantages and disadvantages to both renting and buying. Hereâ€™s what you need to know to make a smart decision. . . .
vantages And Disadvantages Of Renting
Depending on your life situation, financial status, and tolerance level, renting a house might be the best option for you. Here are some factors to consider when renting a home.
Advantages Of Renting:
- Youâ€™re free from the hassle of maintenance problems. The landlord is responsible for all maintenance including appliances and miscellaneous repairs. No muss, no fuss.
- Rental payments might be less than mortgage payments. You wonâ€™t have to worry about paying property taxes and other incidental costs of owning a house. Changes in the price of housing wonâ€™t affect you as much thus lowering your risk in the event of another housing decline.
- You can easily move. When you own a home, you might need to sell it before you can afford to move. When youâ€™re renting you can just pick up and go giving your life increased flexibility. You arenâ€™t tied down by a mortgage.
Disadvantages Of Renting:
- Some landlords will not allow you to make minor alterations without consulting them first. This could include hanging pictures, and other fixtures that would leave holes in the walls. This make it hard to ever truly feel at â€śhomeâ€ť.
- Some landlords donâ€™t pay much attention to concerns regarding repairs and maintenance. It might be difficult to get your landlord to take action quickly, if at all, when something goes wrong.
- Rentals arenâ€™t investments. Rent payments never build equity â€“ but they can for your landlord. This means you are on an endless treadmill of eternal rent payments as long as you choose not to own.
Letâ€™s switch gears for a moment and take a look at the advantages and disadvantages of buying a house.
Advantages And Disadvantages Of Buying A House
Home ownership is not for everyone, but there are some financial and emotional advantages to consider . . . .
Advantages Of Buying A House:
- The house will be all yours once you pay off the mortgage. Also, the odds greatly favor that you will earn some capital gains if you remain in the house long-term. Neither of these will occur as long as you rent.
- Youâ€™ll have the option to rent the house out should to decide to move. Rental earnings can be used to pay the mortgage.
- You can pay off your home and stop making monthly payments. Once the mortgage is paid then your housing costs will fall dramatically thus lowering your risk long-term while increasing your equity.
- You have the freedom to remodel and improve your home whenever you want. No landlords to stop your creative expression!