What are the advantages of buying over renting?


Who wants to hear about the advantages of buying over renting? Few do. But those who do so early, could achieve the same benefits as those who start saving at a young age. Here is another interesting consideration when evaluating renting versus buying.


  • At 1% interest, $1 million should be worth $ 1.35 million after 30 years of compounded interest, however at 5% that soars to over $4,3 million (pre-taxes)

  • A $1 million property tied to 2% annual inflation should be worth $1.81 million after 30 years without any additional neighborhood/market appreciation.


  • If you start with a 20% down payment (and don’t buy a property all cash) on a $1 million property ($200,000) and your mortgage, taxes and maintenance payments equal what you would normally pay in rent, after 30 years, your $1 million property should be worth around $1.8 million tied to a 2% inflation rate alone……and you will have built $1.6m in equity while not paying rent.

  • If you were to pay rent that is the equivalent of the above mortgaged purchase, after 30 years your $200,000 invested at a 4% return would be worth around $650,000.

  • You could also factor in loss of interest on the growth and income your $200,000 down payment would have produced had it not been used for a purchase…..but even if you do so, ownership results in higher ‘savings’.

Also, don’t forget that the money you pay for monthly rent over these years are gone forever!

THOUSANDS of people are currently renting who could afford to buy a home. Start early and become EDUCATED to the long-term advantages of ownership.