Buy vs rent net worth

Buy vs rent net worth comparison

$5,432,123buy

$6,045,956rent

Initial costs

$149,200

Downpayment

$142,000

Closing costs

$7,200

Monthly expenses

$4,090

Mortgage payment

$3,093

Maintenance, property tax & insurance

$997

Property value in 50 years

$2,808,483

- Sale costs

$98,475

≈ Net

$2,710,008

Principal paid

$921,354

Mortgage interest

$385,230

Expenses (maintenance, property tax & insurance)

$1,482,178

Moving costs (closing, realtor etc.)

$1,251,293

Rent paid (imputed)

$3,987,096

Buyer portfolio value in 50 years

$3,028,095

- Capital gains tax of 25%

$305,979

≈ Net

$2,722,116

Renter portfolio value in 50 years

$7,407,740

- Capital gains tax of 25%

$1,361,784

≈ Net

$6,045,956

Rent paid

$3,630,616