Just Start Investing - Rent vs Buy
 Share
The version of the browser you are using is no longer supported. Please upgrade to a supported browser.Dismiss

View only
 
 
ABCDEFGHIJKLMNOPQRSTUVWXYZ
1
2
Assumptions
3
Only fill out cells highlighted in light yellow (the rest are formulas)
4
Basic Assumptions
5
C4Fill in the mortgage interest rate you can obtain
6
C5Fill in the assumed house market % annual return
7
C6Fill in the assumed stock market % annual return
8
C7Fill in your annual investable income (your total income after all expenses, except for housing)
9
C8Fill in closing cost (% of the value of the house)
10
C9Fill in assumed annual property tax %
11
C10Fill in assumed annual rental inflation
12
Buy Assumptions
13
C13Fill in the house price
14
C14Fill in the down payment you would make
15
C16Fill in the length of mortgage (typically 15-30 years)
16
C21Fill in assumed monthly insurance costs
17
C22Fill in assumed monthly HOA fee
18
Rent Assumptions
19
C26Fill in monthly rent (should be close to equal to the monthly costs that you could afford for buying, too
20
C27Fill in assumed monthly insurance costs
21
22
Results
23
EColumn E returns the answer of if you should rent or buy depending on how long you plan to live in the area
24
A positive yearly return
25
A negative yearly return (or cost)
26
NetYour net worth after each year under the respective rent and buy scenarios
27
Buy Scenario
28
GAsset Worth - How much your house is worth based on housing market growth assumption
29
HRealized Asset - How much of your house is realized based on what you pay yearly
30
IMortgage Cost - Your yearly mortgage cost
31
JOther Costs - Yearly taxes, insurance and fees
32
KInterest Cost - Annual interest cost on the remaining bank value of the asset
33
L
Investable Income - How much of your annual investable income is leftover after housing expenses, plus your gains from previous years
34
Rent Scenario
35
O
Realized Asset - How much your principle is worth that you invested rather than using to buy a house (closing cost + down payment)
36
PRental Cost - Annual rental cost
37
Q
Investable Income - How much of your annual investable income is leftover after housing expenses, plus your gains from previous years
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
Loading...
Main menu