Buy or Rent a House

The calculator on this page demonstrates how your net worth will increase over time if you buy a home or continue renting a home. If you buy a home, the chart below demonstrates how your net worth will increase both through the appreciation of your property and the equity that you build over time. In the case that you rent your home, the chart shows how the money that you would otherwise put towards a down payment will appreciate over time based on the appreciation rate of your current investments. (Learn more)

A major part of your decision to buy or rent a home should be your financial goals for the future. Owning your home, Chicago condos  for example, gives you an asset that can appreciate over time much quicker than many other investments. Even if your home does not appreciate over time, owning your home increases your net worth by allowing you to slowly build equity with each monthly mortgage payment  you make. When you rent a home however, you neither build equity nor own an asset that appreciates.


Purchase Price:
Down Payment Amount:
Current Monthly Rent:

Net Worth: Buying versus renting your home
THIS SUMMARY PROVIDES ESTIMATES ONLY . Before making any home or loan purchase decision, you should obtain the advice of a professional financial advisor who is aware of your individual circumstances. Please refer to the Terms Of Use  for a complete description of the proper use of this information.

Understanding Your Results

Net Worth – Owning Your Home: based on your Property Appreciation Rate, this value shows how your Net Worth will increase over 30 years if you purchase a home. Because this value reflects both the equity that you build in your home (the amount of loan principal that you pay off) as well as the appreciation of the value of your home, even if your house does not appreciate over time you will see that your Net Worth will continue to grow.  Also, improvements and precautions toward your home can increase its Net Worth as well such as routine pest control, installing home security systems, or even switching to solar panels.

Net Worth – Renting Your Home: Renting your home means that the money that you would have otherwise put towards a down payment and the monthly amount that you would otherwise be paying towards a mortgage, minus your rent, will stay in a savings or investment account that will grow over time.

Based on your Cash/Stock Appreciation Rate, this value shows how the money you have saved up (your potential down payment if you buy a home) plus the amount that you would have otherwise paid towards a monthly mortgage payment, minus rent, will appreciate over 30 years if you do not invest it in buying a home and continue to rent.

As an example, assume that you have the option to buy a home with a $100,000 down payment and a $3,000 monthly mortgage payment, or rent an equivalent home for $1,000 per month. If you rent your home you can invest the initial $100,000 down payment into an investment account and add $2,000 per month ($3,000 mortgage payment minus $1,000 monthly rent) to that investment account. If you continue adding this money to your account each month for 30 years, depending on appreciation rates, you may build up a nest-egg that may have substantially more value than a home.

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