USA Tool
Rent vs Buy
USA-specific breakeven. Transfer Tax drags foreign buyers out 15+ years; citizens hit breakeven fast. Model the numbers by buyer status, horizon and assumptions.
Upfront Buy Cost
$560,925
Incl. $52,925 closing costs
Transfer Tax (0.00%)
0.00%
Primary Residence
Breakeven Year
Not within horizon
Net Worth Diff @ Yr 10
-$94,878
Buy minus Rent
Year-by-Year Comparison
| Year | Property Value | Loan Bal. | Buyer Equity | Cum. Rent | Buy NW | Rent NW | Diff |
|---|---|---|---|---|---|---|---|
| 1 | $2,060,000 | $1,461,515 | $598,485 | $66,000 | -$64,070 | $522,971 | -$587,041 |
| 2 | $2,121,800 | $1,421,681 | $700,119 | $133,980 | -$64,067 | $484,440 | -$548,506 |
| 3 | $2,185,454 | $1,380,451 | $805,003 | $203,999 | -$60,813 | $445,341 | -$506,154 |
| 4 | $2,251,018 | $1,337,775 | $913,242 | $276,119 | -$54,204 | $405,688 | -$459,892 |
| 5 | $2,318,548 | $1,293,604 | $1,024,944 | $350,403 | -$44,133 | $365,495 | -$409,628 |
| 6 | $2,388,105 | $1,247,885 | $1,140,220 | $426,915 | -$30,487 | $324,778 | -$355,265 |
| 7 | $2,459,748 | $1,200,563 | $1,259,185 | $505,723 | -$13,152 | $283,555 | -$296,708 |
| 8 | $2,533,540 | $1,151,583 | $1,381,958 | $586,894 | $7,990 | $241,848 | -$233,857 |
| 9 | $2,609,546 | $1,100,885 | $1,508,661 | $670,501 | $33,064 | $199,678 | -$166,614 |
| 10 | $2,687,833 | $1,048,411 | $1,639,422 | $756,616 | $62,194 | $157,072 | -$94,878 |
USA-Specific Notes
- • For foreign buyers, 60% Transfer Tax alone = $1,200,000 on this deal. Breakeven is rarely under 15 years.
- • Model assumes renter invests the upfront buy cost at the investment return — a conservative opp-cost anchor.
- • Property appreciation at 3%/yr is the single biggest lever. Sensitivity-test it.
- • Transaction costs on sale (~1% agent + stamping) are not modeled here — subtract them at exit.