The decision to buy or rent a house depends on various factors, and there isn’t a one-size-fits-all answer. However, numbers won’t lie, in this blog, we will take a close look from the financial/number side, because building equity is one of most important aspects of house ownership, besides living quality, stability and security.
The spreadsheet I created is to determine the required annual appreciation in house value to offset the cost difference between buying and renting. In the provided example, the annual appreciation in house value must be 3.72% over the five-year ownership period to cover the additional expenses associated with purchasing and owning the house. The spreadsheet is based on assumptions of a $500,000 house price, a 6.25% interest rate on a 15-year fixed mortgage, a 20% downpayment, and approximately 2.25% property tax. These figures were typical for the Austin area at the time this blog was