Self-managed financial planning

Rent or buy

Over the long run, are you better off buying a home, or renting and investing the difference? This compares the two on equal terms over the mortgage period.

Buying costs

Renting & investing

Wealth at the end of the term

Enter your figures.

At the end of the term

Notes

  1. The value of buying is the value of the property at the end of the term.
  2. The mortgage is the purchase price less the deposit, repaid monthly over the term.
  3. The value of renting assumes the deposit, plus the monthly difference in cost between buying and renting, is invested over the term.
  4. Growth on the property and on investments is assumed to be the same.
  5. Rent and ongoing buying costs increase at the rate of inflation.
  6. The estimated benefit is the difference between the two values at the end of the term.

Assumptions