Agentic intelligence · Real estate
Compare the full holding-period math: carrying costs, opportunity cost, taxes, and exit drag.
If you leave before it, buying can still be the weaker move.
This is the cleanest bottom line at the same horizon.
This scenario never fully crosses break-even inside the 7-year hold. The biggest swing variables are appreciation, investment return, and the year-1 monthly cost gap.
| Year | Buy net worth | Rent net worth |
|---|---|---|
| 1 | $69,036 | $105,134 |
| 2 | $86,801 | $118,590 |
| 3 | $105,329 | $132,373 |
| 4 | $124,658 | $146,487 |
| 5 | $144,825 | $160,936 |
| 6 | $165,873 | $175,723 |
| 7 | $187,843 | $190,852 |
Renting assumes the down payment and closing cash compound at 7.0% instead of being locked in the home.
Ownership uses a 24.0% marginal rate and caps property-tax deductibility inside the model.
7.0% selling costs come off the ownership path at liquidation, so the win has to clear that drag.
| Year | Interest | Deductible int. | Property tax | Deductible tax | Tax savings | Caps |
|---|---|---|---|---|---|---|
| 1 | $21,496 | $21,496 | $4,878 | $4,878 | $2,466 | — |
| 2 | $21,258 | $21,258 | $5,024 | $5,024 | $2,444 | — |
| 3 | $21,004 | $21,004 | $5,175 | $5,175 | $2,419 | — |
| 4 | $20,733 | $20,733 | $5,330 | $5,330 | $2,391 | — |
| 5 | $20,442 | $20,442 | $5,490 | $5,490 | $2,360 | — |
| 6 | $20,131 | $20,131 | $5,655 | $5,655 | $2,325 | — |
| 7 | $19,799 | $19,799 | $5,824 | $5,824 | $2,286 | — |
Home value assumes 3.0%/yr price appreciation — a market-price path, not an income valuation. The investor-math tool prices its exit off the rent roll instead, so the two can legitimately differ for the same home.
| Year | Buy / mo | Rent / mo | Home value | Equity | Rent portfolio | Buy - Rent |
|---|---|---|---|---|---|---|
| 1 | $2,765 | $2,433 | $412,000 | $95,410 | $105,134 | -$36,098 |
| 2 | $2,789 | $2,506 | $424,360 | $111,418 | $118,590 | -$31,790 |
| 3 | $2,815 | $2,581 | $437,091 | $128,051 | $132,373 | -$27,045 |
| 4 | $2,841 | $2,658 | $450,204 | $145,337 | $146,487 | -$21,830 |
| 5 | $2,868 | $2,738 | $463,710 | $163,307 | $160,936 | -$16,111 |
| 6 | $2,896 | $2,820 | $477,621 | $181,994 | $175,723 | -$9,850 |
| 7 | $2,925 | $2,905 | $491,950 | $201,430 | $190,852 | -$3,009 |