Home tools · Buyers
Rent or buy?
Your net worth if you buy, against renting and investing the down payment and any monthly savings instead.
After 10 years
Buying comes out ahead by $28,152
- Net worth if you buy (home equity after selling costs)$452,731
- Net worth if you rent and invest$424,579
- Owning costs in year one (payment, tax, upkeep)$3,959/mo
- Buying pulls ahead inyear 7
| Year | Buy | Rent and invest |
|---|---|---|
| 1 | $127,629 | $167,659 |
| 2 | $158,841 | $192,501 |
| 3 | $191,176 | $218,184 |
| 4 | $224,676 | $244,742 |
| 5 | $259,386 | $272,210 |
| 6 | $295,351 | $300,626 |
| 7 | $332,617 | $330,029 |
| 8 | $371,235 | $360,460 |
| 9 | $411,255 | $391,962 |
| 10 | $452,731 | $424,579 |
Assumes property tax of 1% and maintenance of 1% of the home's value a year, 5% selling costs, and your inputs for growth, rent and returns. Ignores tax on investment gains (often sheltered in a TFSA or FHSA). A planning estimate, not financial advice.
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