Should You Keep Renting? Let's Do the Math.
Your landlord has a mortgage. Your rent pays it: plus their profit. Every month you rent, you're building someone else's wealth. Here's what the numbers actually say.
Renting wins when you'll stay less than about 3 to 4 years, when rent is far below what owning would cost, or when your down payment cash earns more somewhere else. Buying wins when you'll stay 5+ years and can put 10% to 20% down. At that point, paying down principal and appreciation usually beat rising rent. This page runs the math on $300,000 of rent.
By Sean Shallis: 30+ years helping families stop paying someone else's mortgage and start building their own wealth.
Watch: The Real Cost of Renting vs. Buying
Straight talk about building wealth through homeownership.
What does $300,000 in rent really buy you?
Nothing you keep. At $2,500 a month for 10 years, you pay $300,000 in rent and own no equity at the end. Owning the same years turns part of every payment into principal you keep.
If you rent at $2,500/month for 10 years...
If you buy a $400K home with 5% down...
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Buy vs rent FAQ
Is it better to rent or buy right now?
It depends on how long you'll stay. If you'll be in the home 5+ years and can put 10% to 20% down, buying usually wins, because principal paydown and appreciation beat rising rent. If you'll move within about 3 to 4 years, renting is often the smarter call. Run your own numbers before you decide.
How long do I need to stay for buying to make sense?
As a rule of thumb, 5+ years. Buying has upfront closing costs, and it takes time for principal paydown and appreciation to cover them. Under about 3 to 4 years, renting usually costs less in total. Between those, your rent, the home price and your plans decide it.
What costs do renters forget when comparing?
Renters often compare rent to a mortgage payment and stop there. A fair comparison also counts maintenance and repairs, property taxes and insurance, closing costs, and the opportunity cost of your down payment cash. On the other side, count the equity you build and any tax benefit. Leave any of these out and the math tilts.
When is renting the smarter financial move?
Three cases. You'll stay less than about 3 to 4 years. Your rent is far below what owning the same home would cost. Or your down payment cash earns more invested somewhere else. If one of those fits, renting is a sound choice, not a failure. Revisit it when your plans change.
Keep reading
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