Rent Vs. Own

Why renting costs more than you think

Ever heard these common gripes?


  • I hate throwing away money on rent
  • I don’t want to be house poor with a mortgage

See a theme? In both scenarios, we MUST spend money to keep a roof over our heads. 

So what gives – why all the confusion? To better understand, let’s break it down into simple math. Instead of complicated words and figures, we will use icons. PIGGY BANKS we keep, COINS we lose. 


Let’s assume we have selected a home that would rent for $2,000 or sell for $450,000:

So how did our COINS and PIGGY BANKS fall after 30 years?

OK, OWNING A HOME MAKES SENSE!! So WHY doesn’t everyone do it? 


Because this is what most people say you need to buy a 1st home… 

(Hint: It is NOT the only way and most people DON’T do this)

Price of admission...


Below is an EXACT snapshot of what I did to buy my first condo in California…

Of course, many other factors fit into homeownership. The previous snapshot is a fair estimate of what a person could expect over a 30-year home purchase. Other things to consider (good & bad!):


    • You could pay less in taxes each year. The interest paid on your loan is tax-deductible.
    • You won’t see your money again until you sell the home.
    • You will pay property tax (but we included this in our monthly coins!). This expense is also tax-deductible. 
    • You will have maintenance costs. 
    • You could have an HOA fee.
    • You will need to buy homeowners insurance. 

Don’t let these additional costs scare you! You must pay to play. Think of it like buying airfare. The main cost is the base fare, then added baggage fee, taxes, and miscellaneous fees. Do you let the final add-on costs stop you from buying the ticket? 


So decide for yourself – which is best for you? 



  • For some, renting gives peace-of-mind: behave as a tenant and pay the agreed amount*, you will have a place to call home without any extra expenses. And that is OK! No shame in the game. 

     (*It will increase over time).


  • For others, they view homeownership as a forced-savings account with ‘be-your-own-landlord’ perks. Plus, after 15-30 years, the mortgage payment is GONE, and they essentially live for free. 

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