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Rent vs Buy

Given the same capital, should you buy a home or rent and invest the down payment? This tool compares net wealth after N years, accounting for mortgage interest, property appreciation, rent growth, holding costs, and investment opportunity cost.

Buying inputs

HOA, taxes, insurance, maintenance.

Renting inputs

Assumed annualized return if the down payment + monthly payment differential are invested.

After 20 years
Net worth gap
Renting wins by NT$3.4M
Buyer net worth
NT$16.45M
Projected home value: NT$26.75M
− Remaining loan principal: NT$5.83M
− Cumulative holding cost: NT$4.46M
Monthly mortgage: NT$53,948
Cumulative interest paid: NT$4.38M
Renter net worth
NT$19.86M
Investment balance: NT$19.86M
Cumulative rent paid: NT$7.29M
Down payment NT$3.6M + monthly payment differential invested.

Method: buyer net worth = current home value − remaining principal − cumulative holding cost. Renter net worth = down payment + monthly (mortgage − rent) positive differential invested at the return rate (monthly compounding). Excludes transaction taxes/fees (deed tax, broker, legal, registration), property tax and land value tax; add these for a precise comparison.

Net worth over time

Inputs cover both sides: house price, down payment %, mortgage rate, holding cost %, price growth assumption on the buy side; monthly rent, rent growth, investment return on the rent side.

Excluded (for simplicity): transaction taxes and fees (deed tax, broker fees, land value tax), depreciation/maintenance variance, lifestyle flexibility value. Adjust the holding cost % to reflect your expected real costs.

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