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Glossary Finance

Rent versus buy

Rent versus buy compares the total cost of renting a home with the total cost of owning one over the same period, including price growth.

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In more detail

Buying has costs beyond the mortgage: property tax, insurance, maintenance and closing and selling costs. It usually favours people who stay long enough, often five to seven years or more, for equity and price growth to outweigh them.

Try these tools

Rent vs. Buy Calculator

Decide whether it makes more financial sense to rent or buy a home by comparing costs, appreciation, and investment returns over time.

See also

  • Glossary Equity
    Equity is the part of an asset you truly own: its current value minus what you still owe against it.
  • Glossary Down payment
    A down payment is the part of a purchase price you pay upfront from your own money, with a loan covering the rest.
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