Renting vs. Buying: 3-Year Comparison

Renting vs. Buying: 3-Year Comparison

Renting:

• Monthly Cost: Let’s say $1,500/month for rent = $54,000 over 3 years ($1,500 × 36 months).

• Upfront Costs: Typically first month’s rent + security deposit (about 1 month’s rent) = $3,000 upfront.

• Maintenance: Usually $0, as landlords cover repairs.

• Flexibility: Can leave after lease ends, but no financial return.

• Net Return: $0 equity built, all payments go to the landlord.

Buying:

• Monthly Cost: Assume a $250,000 home with a 6% interest rate on a 30-year mortgage. Payment (including taxes & insurance) = about $1,800/month = $64,800 over 3 years ($1,800 × 36 months).

• Upfront Costs: Down payment (5%) + closing costs (3%) = $20,000 upfront but with down payment assistance and some serious negotiating for the seller to contribute to your closing cost that could literally be $1000!!

• Maintenance: Estimate $2,500/year for repairs = $7,500 over 3 years.

• Equity Growth: After 3 years, $15,000–$18,000 of payments may go toward equity. Plus potential home value appreciation (~3%/year), adding about $23,000.

• Net Return: Roughly $40,000 in total equity and appreciation (equity + home value growth).

Summary:

• Renting: Lower upfront cost, more flexible, but no financial return.

• Buying: Higher upfront cost and maintenance, but builds wealth (~$40K).

Would you rather “pay for someone else’s property” or “build your own wealth”?

https://linktr.ee/priscillasellshouses

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https://www.har.com/web/priscillagallegos/homedetail/5927923