Rent $4,000/mo vs Buy a $450K Home
A side-by-side financial comparison of renting at $4,000/month vs buying a $450,000 home with 20% down over 5 to 30 years.
Monthly Rent
$4,000
+ 3%/yr increases
Monthly Ownership
$3,284
P&I + tax + ins + maint
Monthly Ownership Breakdown
Principal & Interest
$2,365
Property Tax (1.1%)
$413
Insurance
$131
Maintenance (1%)
$375
Down Payment Required (20%)
$90,000
Wealth Comparison Over Time
| Year | Renter Wealth* | Home Equity | Winner | Difference |
|---|---|---|---|---|
| Year 5 | $132,240 | $196,042 | Buy | $63,802 |
| Year 7 | $154,244 | $245,038 | Buy | $90,794 |
| Year 10 | $194,303 | $326,759 | Buy | $132,456 |
| Year 15 | $285,495 | $488,735 | Buy | $203,240 |
| Year 20 | $419,486 | $690,586 | Buy | $271,100 |
| Year 30 | $905,639 | $1,263,057 | Buy | $357,418 |
* Renter wealth = down payment invested at 8% return. Home equity = home value (3.5% appreciation) minus remaining mortgage.
Analysis: Renting at $4,000 vs Buying at $450K
At $3,284/month, owning this $450K home is actually cheaper than your $4,000/month rent while also building equity. This is a strong case for buying if you plan to stay for at least 5 years.
Based on these assumptions, buying becomes the better financial move after about 5 years. If you plan to stay shorter than that, renting is more cost-effective. For a personalized analysis, use our mortgage calculator or explore other price points below.