2 - Google Sheets

	A	B	C	D	E	F	G	H	I	J	K	L	M
1	Comparison between buying an apartment and investing in index ETF yielding 10%
2		A couple with a 22K per month salary considering buying an apartment and investing
3		any free money in risk free return
4		VS
5		A couple with 22K per month salary considering renting forever
6		and investing in 10% stocks return, after 25 years paying ALL TAXES (hard assumption)
7
8		INPUT DATA						OUTPUT DATA
9		Initial salary of couple, Initial mortgage is 35% of this salary, maximum allowed by banks						Renting apartment couple net worth BEFORE TAX	28,222,939.26
10		Salary:	20,000.00	Net				Buying couple net worth BEFORE TAX	29,650,372.12
11		Mortgage payment:	0.00	every month
12		Investments	7.00%	Average yealy yield				Difference in favor of renting:	-1,427,432.87
13		Inflation	4.00%
14		Mortgage rate	0.00%
15		Initial equity	3,900,000
16		Initial equity downpayment for home	1,750,000					Hard assumptions:
17		Loan size	0					Assuming all invesing taxes are paid after 25 years (nobody needs to pay tax if they do not sell)
18		Apartment worth	1,750,000	0%	financing			Assuming no mortgage insurance costs and ther costs
19		Initial rent	3,000	per month (	11.00%	yield for apartment lessor)		Assuming no taxes on apartment
20		Couple Expenses	12,000.00	per month	all available income goes to expenses, at first			Assuming risk on investing all your capital in one location is zero
21		Solid return	7.00%	per year				Assuming high inflation risk that would cripple the investor but kill the borrower is zero				1.080864345
22		עליית מחירי הנדל"ן	2.00%
23
24
25				Buying an apartment					Renting and investing in stocks indexes
26	Year	Month	Salary	Mortgage payment	Monthly expenses	Free Cash flow after expenses and mortgage	Solid portfolio size	Apartment worth	Rent to pay	Expenses	Free cash flow after expenses and rent	Portfolio size	Cost of portfolio adjusted for inflation for tax purposes
27	1	1	20,000.00	0.00	12,000.00	8,000.00	2,158,000.00	1,750,000.00	3,000.00	12,000.00	5,000.00	3,905,000.00	3,905,000.00
28	1	2	20066.66667	0.00	12,040.00	8,026.67	2,178,615.00	1,758,750.00	3,010.00	12,040.00	5,016.67	3,932,795.83	3,923,033.33
29	1	3	20133.55556	0.00	12,080.13	8,053.42	2,199,377.01	1,767,543.75	3,020.03	12,080.13	5,033.39	3,960,770.53	3,941,143.50
30	1	4	20200.66741	0.00	12,120.40	8,080.27	2,220,286.98	1,776,381.47	3,030.10	12,120.40	5,050.17	3,988,925.19	3,959,330.81
31	1	5	20268.00297	0.00	12,160.80	8,107.20	2,241,345.85	1,785,263.38	3,040.20	12,160.80	5,067.00	4,017,260.92	3,977,595.58
32	1	6	20335.56298	0.00	12,201.34	8,134.23	2,262,554.59	1,794,189.69	3,050.33	12,201.34	5,083.89	4,045,778.84	3,995,938.12
33	1	7	20403.34819	0.00	12,242.01	8,161.34	2,283,914.17	1,803,160.64	3,060.50	12,242.01	5,100.84	4,074,480.05	4,014,358.76
34	1	8	20471.35935	0.00	12,282.82	8,188.54	2,305,425.54	1,812,176.44	3,070.70	12,282.82	5,117.84	4,103,365.69	4,032,857.79
35	1	9	20539.59721	0.00	12,323.76	8,215.84	2,327,089.70	1,821,237.33	3,080.94	12,323.76	5,134.90	4,132,436.89	4,051,435.55
36	1	10	20608.06253	0.00	12,364.84	8,243.23	2,348,907.61	1,830,343.51	3,091.21	12,364.84	5,152.02	4,161,694.79	4,070,092.35
37	1	11	20676.75608	0.00	12,406.05	8,270.70	2,370,880.28	1,839,495.23	3,101.51	12,406.05	5,169.19	4,191,140.53	4,088,828.51
38	1	12	20745.6786	0.00	12,447.41	8,298.27	2,393,008.68	1,848,692.71	3,111.85	12,447.41	5,186.42	4,220,775.27	4,107,644.36
39	2	13	20814.83086	0.00	12,488.90	8,325.93	2,415,293.83	1,857,936.17	3,122.22	12,488.90	5,203.71	4,250,600.17	4,126,540.22
40	2	14	20884.21363	0.00	12,530.53	8,353.69	2,437,736.73	1,867,225.85	3,132.63	12,530.53	5,221.05	4,280,616.39	4,145,516.41
41	2	15	20953.82767	0.00	12,572.30	8,381.53	2,460,338.40	1,876,561.98	3,143.07	12,572.30	5,238.46	4,310,825.11	4,164,573.25
42	2	16	21023.67377	0.00	12,614.20	8,409.47	2,483,099.84	1,885,944.79	3,153.55	12,614.20	5,255.92	4,341,227.50	4,183,711.08
43	2	17	21093.75268	0.00	12,656.25	8,437.50	2,506,022.09	1,895,374.51	3,164.06	12,656.25	5,273.44	4,371,824.77	4,202,930.22
44	2	18	21164.06519	0.00	12,698.44	8,465.63	2,529,106.18	1,904,851.39	3,174.61	12,698.44	5,291.02	4,402,618.10	4,222,231.00
45	2	19	21234.61207	0.00	12,740.77	8,493.84	2,552,353.14	1,914,375.64	3,185.19	12,740.77	5,308.65	4,433,608.69	4,241,613.76
46	2	20	21305.39411	0.00	12,783.24	8,522.16	2,575,764.03	1,923,947.52	3,195.81	12,783.24	5,326.35	4,464,797.75	4,261,078.82
47	2	21	21376.41209	0.00	12,825.85	8,550.56	2,599,339.88	1,933,567.26	3,206.46	12,825.85	5,344.10	4,496,186.51	4,280,626.52
48	2	22	21447.6668	0.00	12,868.60	8,579.07	2,623,081.76	1,943,235.10	3,217.15	12,868.60	5,361.92	4,527,776.18	4,300,257.19
49	2	23	21519.15902	0.00	12,911.50	8,607.66	2,646,990.74	1,952,951.27	3,227.87	12,911.50	5,379.79	4,559,568.00	4,319,971.17
50	2	24	21590.88955	0.00	12,954.53	8,636.36	2,671,067.87	1,962,716.03	3,238.63	12,954.53	5,397.72	4,591,563.20	4,339,768.80
51	3	25	21662.85918	0.00	12,997.72	8,665.14	2,695,314.25	1,972,529.61	3,249.43	12,997.72	5,415.71	4,623,763.04	4,359,650.41
52	3	26	21735.06871	0.00	13,041.04	8,694.03	2,719,730.94	1,982,392.26	3,260.26	13,041.04	5,433.77	4,656,168.75	4,379,616.35
53	3	27	21807.51894	0.00	13,084.51	8,723.01	2,744,319.04	1,992,304.22	3,271.13	13,084.51	5,451.88	4,688,781.62	4,399,666.95
54	3	28	21880.21067	0.00	13,128.13	8,752.08	2,769,079.66	2,002,265.74	3,282.03	13,128.13	5,470.05	4,721,602.90	4,419,802.56
55	3	29	21953.14471	0.00	13,171.89	8,781.26	2,794,013.88	2,012,277.07	3,292.97	13,171.89	5,488.29	4,754,633.87	4,440,023.52
56	3	30	22026.32186	0.00	13,215.79	8,810.53	2,819,122.82	2,022,338.45	3,303.95	13,215.79	5,506.58	4,787,875.81	4,460,330.18
57	3	31	22099.74293	0.00	13,259.85	8,839.90	2,844,407.60	2,032,450.15	3,314.96	13,259.85	5,524.94	4,821,330.02	4,480,722.88
58	3	32	22173.40874	0.00	13,304.05	8,869.36	2,869,869.34	2,042,612.40	3,326.01	13,304.05	5,543.35	4,854,997.80	4,501,201.97
59	3	33	22247.3201	0.00	13,348.39	8,898.93	2,895,509.18	2,052,825.46	3,337.10	13,348.39	5,561.83	4,888,880.45	4,521,767.81
60	3	34	22321.47784	0.00	13,392.89	8,928.59	2,921,328.24	2,063,089.59	3,348.22	13,392.89	5,580.37	4,922,979.29	4,542,420.74
61	3	35	22395.88276	0.00	13,437.53	8,958.35	2,947,327.67	2,073,405.03	3,359.38	13,437.53	5,598.97	4,957,295.64	4,563,161.11
62	3	36	22470.5357	0.00	13,482.32	8,988.21	2,973,508.63	2,083,772.06	3,370.58	13,482.32	5,617.63	4,991,830.83	4,583,989.28
63	4	37	22545.43749	0.00	13,527.26	9,018.17	2,999,872.27	2,094,190.92	3,381.82	13,527.26	5,636.36	5,026,586.20	4,604,905.61
64	4	38	22620.58895	0.00	13,572.35	9,048.24	3,026,419.76	2,104,661.87	3,393.09	13,572.35	5,655.15	5,061,563.10	4,625,910.44
65	4	39	22695.99091	0.00	13,617.59	9,078.40	3,053,152.27	2,115,185.18	3,404.40	13,617.59	5,674.00	5,096,762.89	4,647,004.14
66	4	40	22771.64421	0.00	13,662.99	9,108.66	3,080,070.99	2,125,761.11	3,415.75	13,662.99	5,692.91	5,132,186.91	4,668,187.06
67	4	41	22847.5497	0.00	13,708.53	9,139.02	3,107,177.09	2,136,389.91	3,427.13	13,708.53	5,711.89	5,167,836.56	4,689,459.58
68	4	42	22923.70819	0.00	13,754.22	9,169.48	3,134,471.77	2,147,071.86	3,438.56	13,754.22	5,730.93	5,203,713.20	4,710,822.03
69	4	43	23000.12056	0.00	13,800.07	9,200.05	3,161,956.24	2,157,807.22	3,450.02	13,800.07	5,750.03	5,239,818.22	4,732,274.80
70	4	44	23076.78762	0.00	13,846.07	9,230.72	3,189,631.70	2,168,596.26	3,461.52	13,846.07	5,769.20	5,276,153.03	4,753,818.25
71	4	45	23153.71025	0.00	13,892.23	9,261.48	3,217,499.37	2,179,439.24	3,473.06	13,892.23	5,788.43	5,312,719.01	4,775,452.74
72	4	46	23230.88928	0.00	13,938.53	9,292.36	3,245,560.47	2,190,336.44	3,484.63	13,938.53	5,807.72	5,349,517.60	4,797,178.64
73	4	47	23308.32558	0.00	13,985.00	9,323.33	3,273,816.23	2,201,288.12	3,496.25	13,985.00	5,827.08	5,386,550.20	4,818,996.31
74	4	48	23386.02	0.00	14,031.61	9,354.41	3,302,267.90	2,212,294.56	3,507.90	14,031.61	5,846.50	5,423,818.24	4,840,906.14
75	5	49	23463.9734	0.00	14,078.38	9,385.59	3,330,916.72	2,223,356.03	3,519.60	14,078.38	5,865.99	5,461,323.18	4,862,908.49
76	5	50	23542.18664	0.00	14,125.31	9,416.87	3,359,763.94	2,234,472.81	3,531.33	14,125.31	5,885.55	5,499,066.44	4,885,003.73
77	5	51	23620.6606	0.00	14,172.40	9,448.26	3,388,810.83	2,245,645.18	3,543.10	14,172.40	5,905.17	5,537,049.49	4,907,192.24
78	5	52	23699.39613	0.00	14,219.64	9,479.76	3,418,058.65	2,256,873.40	3,554.91	14,219.64	5,924.85	5,575,273.80	4,929,474.40
79	5	53	23778.39412	0.00	14,267.04	9,511.36	3,447,508.69	2,268,157.77	3,566.76	14,267.04	5,944.60	5,613,740.83	4,951,850.58
80	5	54	23857.65544	0.00	14,314.59	9,543.06	3,477,162.22	2,279,498.56	3,578.65	14,314.59	5,964.41	5,652,452.06	4,974,321.16
81	5	55	23937.18095	0.00	14,362.31	9,574.87	3,507,020.54	2,290,896.05	3,590.58	14,362.31	5,984.30	5,691,409.00	4,996,886.52
82	5	56	24016.97156	0.00	14,410.18	9,606.79	3,537,084.94	2,302,350.53	3,602.55	14,410.18	6,004.24	5,730,613.12	5,019,547.06
83	5	57	24097.02813	0.00	14,458.22	9,638.81	3,567,356.75	2,313,862.28	3,614.55	14,458.22	6,024.26	5,770,065.96	5,042,303.14
84	5	58	24177.35156	0.00	14,506.41	9,670.94	3,597,837.27	2,325,431.59	3,626.60	14,506.41	6,044.34	5,809,769.01	5,065,155.15
85	5	59	24257.94273	0.00	14,554.77	9,703.18	3,628,527.83	2,337,058.75	3,638.69	14,554.77	6,064.49	5,849,723.82	5,088,103.49
86	5	60	24338.80254	0.00	14,603.28	9,735.52	3,659,429.77	2,348,744.05	3,650.82	14,603.28	6,084.70	5,889,931.91	5,111,148.53
87	6	61	24419.93188	0.00	14,651.96	9,767.97	3,690,544.41	2,360,487.77	3,662.99	14,651.96	6,104.98	5,930,394.83	5,134,290.68
88	6	62	24501.33165	0.00	14,700.80	9,800.53	3,721,873.12	2,372,290.21	3,675.20	14,700.80	6,125.33	5,971,114.13	5,157,530.31
89	6	63	24583.00276	0.00	14,749.80	9,833.20	3,753,417.25	2,384,151.66	3,687.45	14,749.80	6,145.75	6,012,091.38	5,180,867.83
90	6	64	24664.9461	0.00	14,798.97	9,865.98	3,785,178.16	2,396,072.42	3,699.74	14,798.97	6,166.24	6,053,328.15	5,204,303.63
91	6	65	24747.16259	0.00	14,848.30	9,898.87	3,817,157.23	2,408,052.78	3,712.07	14,848.30	6,186.79	6,094,826.02	5,227,838.10
92	6	66	24829.65313	0.00	14,897.79	9,931.86	3,849,355.84	2,420,093.04	3,724.45	14,897.79	6,207.41	6,136,586.59	5,251,471.64
93	6	67	24912.41864	0.00	14,947.45	9,964.97	3,881,775.39	2,432,193.51	3,736.86	14,947.45	6,228.10	6,178,611.45	5,275,204.65
94	6	68	24995.46003	0.00	14,997.28	9,998.18	3,914,417.26	2,444,354.47	3,749.32	14,997.28	6,248.87	6,220,902.21	5,299,037.53
95	6	69	25078.77823	0.00	15,047.27	10,031.51	3,947,282.87	2,456,576.25	3,761.82	15,047.27	6,269.69	6,263,460.50	5,322,970.68
96	6	70	25162.37416	0.00	15,097.42	10,064.95	3,980,373.64	2,468,859.13	3,774.36	15,097.42	6,290.59	6,306,287.95	5,347,004.51
97	6	71	25246.24874	0.00	15,147.75	10,098.50	4,013,690.99	2,481,203.42	3,786.94	15,147.75	6,311.56	6,349,386.19	5,371,139.42
98	6	72	25330.40291	0.00	15,198.24	10,132.16	4,047,236.34	2,493,609.44	3,799.56	15,198.24	6,332.60	6,392,756.88	5,395,375.82
99	7	73	25414.83758	0.00	15,248.90	10,165.94	4,081,011.16	2,506,077.49	3,812.23	15,248.90	6,353.71	6,436,401.67	5,419,714.11
100	7	74	25499.55371	0.00	15,299.73	10,199.82	4,115,016.88	2,518,607.87	3,824.93	15,299.73	6,374.89	6,480,322.23	5,444,154.72