Rent Vs Buy Calculator

Rent vs Buy Calculator

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Buying vs. Renting

That cute little house down the street is finally for sale, and now that you’ve got a car and a steady job, you’re entertaining the idea of taking the plunge and buying your first house. Becoming a homeowner has long been a hallmark of the American dream, but it entails serious commitment. After the collapse of the housing market led to a record number of foreclosures and a difficult economy, potential homeowners are understandably wary. Purchasing a home may not necessarily be in your best interests, despite the expectation that one day you will own a home. Likewise, buying a home can be daunting, but this should not deter someone for whom buying is the better option. Whether buying or renting is a better decision for you depends on many factors.

The decision to buy or rent is based largely on financial resources, and there are many numbers to consider. Some excellent online calculators, such as this one from the New York Times, use your financial data to give you a clear picture of whether renting or buying is the better option. Determining factors go far beyond cost of rent vs. the cost of the house, which helps you make a more informed decision. For example, this graphic takes into account your purchase or renting costs, yearly costs, lost opportunity costs, and selling costs. Buying a home is a complex formula with many variables, whereas renting is more straightforward.