Mortgage vs Rent — Which Is Actually Cheaper

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Overview

The buy vs rent decision is more complex than most people think. This analysis breaks down the true cost of each option over different time horizons.

True ownership cost = Mortgage + Tax + Insurance + Maintenance − Equity gained

Standard formula used by professionals worldwide

Mortgage 38,601/mo vs Rent 25,000/mo | But ownership builds equity — rent cost is permanent

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Not necessarily — depends on property price growth in your area and how long you plan to stay.

If price-to-annual-rent ratio is below 15, buying is generally favourable.

Rent increases over time. Mortgage stays fixed in nominal terms (fixed rate).

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