Compare Wealth Building Strategies
Owning Scenario
Annual Mortgage Payment
$32,410
Year 1 Total Owning Costs:
Mortgage: $32,410 + Taxes: $3,000 + Maintenance: $5,150
Total: $40,560
Rent & Invest Scenario
Strategy: Each year, invest the difference between total owning costs (mortgage + taxes + maintenance) and rent.
Year 1 Amount to Invest:
Total Owning Costs ($40,560) - Rent ($25,000)
$15,560
Net Wealth Comparison Over 25 Years
Own Property (25 years)
Property Value:$1,046,889
Remaining Loan:-$0
Net Equity:$1,046,889
Rent & Invest (25 years)
Portfolio Value:$1,142,474
Current Annual Rent:-$52,344
Net Worth:$1,142,474
Renting & Investing wins by $95,585