A rent vs buy calculator compares the total cost of renting a home against buying one over a given time horizon. It accounts for mortgage payments, opportunity cost of the down payment, maintenance, taxes, and rental increases.
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Pro Tip
The most important variable is how long you plan to stay. The transaction costs of buying (stamp duty, legal fees, agent fees) typically take 3–5 years just to break even.
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Did You Know?
The New York Times offers a detailed rent-vs-buy calculator; in most global cities, renting and investing the difference often outperforms buying over 10-year horizons unless house prices grow significantly.
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