The American Dream of Home Ownership Is Alive and Well.
Headlines say owning is out of reach. I ran one real listing both ways. Buying won by thousands of reasons. About 146,500 of them.
One Condo, Two Choices
A 2-bedroom condo in Millburn, NJ, listed at $599,000. Walk to town, walk to the Midtown Direct train, top schools. A similar unit rents for about $3,500 a month. Same home. Rent it, or own it?
Hypothetical example: 20% down, a 30-year fixed at 6.99% with no points, taxes and HOA included, and an example 24% tax bracket.
| Buy (30-yr) | Rent | |
|---|---|---|
| Monthly payment, all in | $4,151 | $3,500 |
| After estimated tax savings | $3,318 | $3,500 |
| Equity after 5 years | about $243K | $0 |
| 5-year value vs. renting | about +$146.5K | Baseline |
Less per month
After estimated tax savings, owning ran about $182 a month less than rent.
Equity builds
Rent builds your landlord's equity. Owning builds yours.
Rent gets no write-off
Rent has zero tax benefit. Mortgage interest and property tax may.
Your Numbers Are Your Own
Your price, your down payment, your tax picture. Each one changes the answer. That part takes your facts, not a blog post.
Your Situation, Not the Example
Renting right now? Run your own numbers.
Just ask Rosie. Find out instantly at seanshallis.com. Or book 15 minutes with me.
Realtor partners: I build buy vs. rent brochures like this one for your listings. Find them in the Partners portal.
Learn more: Buy vs. Rent: The Real Math · Buy When Rates Rise
Hypothetical example for illustration only. Not a rate quote, an offer of credit or a commitment to lend. The 6.99% rate is illustrative, not a current offer. Figures assume a $599,000 price, 20% down ($119,800), a $479,200 loan, property taxes of $691 a month, HOA of $215 a month, an estimated insurance figure, a 24% tax bracket and itemized deductions. Equity assumes no change in home value. Closing, selling and maintenance costs are not included. Tax savings are estimates and are not tax advice; consult a tax professional. Rent of $3,500 a month is an estimate for a comparable unit.
These are my own opinions, not the views of any employer, lender or bank. All loans subject to credit approval and program guidelines; not all programs available in all states or for all loan amounts.
Sean Shallis · NMLS #2362814 · Equal Housing Lender