The Shocking Truth About Renting vs. Buying (A 10-Year Comparison)

Have you ever wondered about the financial impact of buying vs. renting over 10-years?

buying a home vs renting a home comparison

Original Image by Chau Nguyen Thi Hong via Canva

I don’t want to freak you out, but you’ll be surprised to see the MASSIVE difference it makes. 

Let me break it down for you. 👇

Starting at $1,850 per month in 2013, with a 3% annual increase, you would’ve paid roughly $252,000 in total rent by 2023. 

At the same time…

A $300,000 house bought in 2013 with a 30-year mortgage at 5% interest equals monthly payments of about $1,610. Ten years later, you’ve paid approximately $193,200

But this is not all.

Assuming a 4% annual appreciation, your $300,000 house bought in 2013 is worth close to $444,000 in 2023. 

Plus, you’ve paid off nearly $57,000 of the principal. 🥳

Now think about how this affects your savings. Starting with a $60,000 salary in 2013 and a 3% annual increase, you’d be making about $80,300 by 2023. With a fixed mortgage payment, you’ve saved more each month as your salary grew and rent prices increased. 

Remember, your mortgage stayed the same while rent kept rising. (Of course, you have to factor in home maintenance, insurance, and tax costs.)

The bottom line? There’s no right or wrong choice. Both buying a home and renting have their pros and cons. It depends on what your long-term lifestyle goals are. 

Owning a home offers stability and the chance for appreciation while renting offers a lot more flexibility. (The only downside is that you pay almost the same amount over a certain time, but you’re left without the asset in the end.)

Your choice entirely depends on your financial situation and lifestyle and car for sell preferences. So choose wisely, my friend. 

And if you decide to invest in a quality future by buying a home, know that we have your back and are happy to answer all your questions.

Follow me on Insta and lets be friends 👉 Herman Antonov

Just schedule a free “Plan Your Moveconsultation call so we can help you plan a smooth, stress-free, and enjoyable move.

No selling, no obligations – just a relaxed coffee chat to connect and see how I and my team of expert Realtors® can help you on your journey.

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