QuickCalcy money guide
Rent vs Buy Guide: Compare Long-Term Net Worth
Rent versus buy is an opportunity-cost comparison, not simply monthly rent versus EMI.
How the comparison is balanced
The renter invests the down payment and purchase costs that the buyer spends. Each month, whichever option has the lower housing cost invests the difference. The buyer ends with home equity plus invested savings.
What QuickCalcy includes
The model includes remaining loan balance, acquisition costs, maintenance, rent growth, home appreciation and investment return. Loan tenure is separate from comparison period.
Use realistic local inputs
Purchase costs and maintenance vary by property and location. Appreciation and investment return compound, so test several combinations rather than choosing assumptions that justify a preferred answer.
Mistakes and limitations
- Do not treat gross home value as net worth while debt remains.
- Remember that a home is illiquid.
- Consider stability, commute and flexibility separately.
Taxes, selling costs, renovation, deposits and lifestyle value are excluded.