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Homebuyer education - keep this one

Rent vs Own: The Real Comparison

The rent vs own question is not just about the monthly check you write - it is about where your money goes and what it builds. Here is an honest side-by-side look. Most buyers are surprised by how close the numbers are once equity enters the picture.

🏠 Renting
Payment goes to landlord
No equity built
Low maintenance burden
  • Every rent dollar leaves permanently - no asset, no return
  • Rent historically rises over time with no ceiling between lease renewals
  • Your landlord builds equity on your payments while you remain a tenant
  • Flexibility to move without a sale - real advantage for short timelines
  • Maintenance and major repairs are typically the landlord's problem
🏭 Owning
Builds equity two ways
Payment stability
Tax angles - ask your CPA
  • Principal paydown: each payment reduces your loan balance - equity you keep
  • Appreciation: home values have historically trended upward over time (not guaranteed)
  • Fixed principal and interest - no landlord raising your housing cost mid-year
  • Potential mortgage interest and property tax deductions - ask your CPA
  • You control the space: renovations, pets, paint - and the wealth it builds

The 5-Year Picture: What Each Path Builds (Illustrative)

Rent paid out
(at ~$2,400/mo)
~$144,000 paid to landlord rent keeps rising ↗
Rent rises over time - total climbs with it. Zero returned to you.
Homeowner equity
built (can vary)
Principal paydown + appreciation equity compounds ↗
Equity grows through two engines simultaneously: monthly paydown AND value appreciation. Historically, both have worked in owners' favor. Past performance does not guarantee future results.
Rent figure is illustrative only. Actual rent, home values, and equity outcomes vary by market, price point, and economic conditions. This is not a loan estimate or projection of specific financial results.

The honest balance: owning has costs renting does not

Credibility matters - here is the full picture. Before you buy, budget for:

  • Annual maintenance and repairs (common rule of thumb: 1-2% of home value per year, though it varies widely)
  • Property taxes - real and ongoing, not included in rent
  • Homeowner's insurance and, where applicable, HOA dues
  • Transaction costs to buy and sell - owning makes more sense the longer you stay
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Equal Housing Opportunity. {{lo.company}}, NMLS #{{lo.nmls}} (Company NMLS #{{compliance.companyNmls}}). This material is educational only and is not a commitment to lend, an offer of credit, or a fee quote; all loans are subject to underwriting approval. The rent figure shown is illustrative and not tied to any specific loan program or financing offer. Home value appreciation is not guaranteed; historical trends do not predict future results. Tax benefits depend on individual circumstances - consult a qualified tax advisor. This co-marketed material is shared by each party at its fair-market-value cost consistent with RESPA Section 8; no party pays for referrals and none are required.