How It Works
Both scenarios start with cash equal to the down payment plus purchase closing costs. The renter invests it and the annual buyer-cost-minus-rent difference at year-end.
Buyer wealth=sale value minus selling costs and remaining loan. Rent and ownership costs change annually at the entered rates.
Scope and Limitations
- Annual cash-flow approximation. Excludes tax deductions, deposits and precise transaction timing. Negative renter portfolio values represent an unfunded scenario. Entered future rates are assumptions.
Reference Sources
FAQs
How does this calculator work?
Both scenarios start with cash equal to the down payment plus purchase closing costs. The renter invests it and the annual buyer-cost-minus-rent difference at year-end.
What assumptions should I check?
Annual cash-flow approximation. Excludes tax deductions, deposits and precise transaction timing. Negative renter portfolio values represent an unfunded scenario. Entered future rates are assumptions. Buyer wealth=sale value minus selling costs and remaining loan. Rent and ownership costs change annually at the entered rates.