Finance
Rent vs Buy: Make the Right Choice
Compare renting vs buying costs for your situation.
Rent or buy is a major financial decision.
Buying Costs
- Down payment: 3-20%
- Mortgage P+I
- Taxes: 0.5-2.5%/yr
- Insurance: $800-2,000/yr
- Maintenance: 1-2%/yr
Renting Costs
- Monthly rent
- Insurance: $15-30/mo
- No maintenance
Break-Even
Buying cheaper after 3-7 years typically.
When Rent Wins
Moving in <3 years. Need flexibility. High-cost market.
Frequently Asked Questions
Cheaper rent or buy?
Buying wins after 3-7 years in most markets.
How long before buying?
At least 5 years to recoup costs.
5% rule?
Annual costs ≤5% of home price.