Rent vs. Buy
Morty runs a 30-year projection to settle the debate — rent and invest, or buy and build equity?
Scenario Inputs
Market Assumptions
After 25 Years, Buying Wins by
$118,358
Buying breaks even at year 9
Buyer equity is net of $52,344 selling costs
Net Worth Projection
$994,545
$876,187
$2,167.00
P+I only
True Cost of Buying — What People Forget
Upfront Cash Required
$117,500
$100,000 down + $17,500 closing
Year 1 Ownership
$11,500
Maintenance + tax + insurance
Selling Costs at Exit
$52,344
5% of final home value
Monthly All-In
$3,125.00
Mortgage + ownership overhead
Key Milestones
| Year | Buyer Equity* | Renter Portfolio | Home Value | Monthly Rent | Ownership/yr |
|---|---|---|---|---|---|
| 0 | $100,000 | $117,500 | $500,000 | $2,200.00 | $11,500 |
| 5 | $200,702 | $219,693 | $579,637 | $2,550.00 | $13,093 |
| 10 | $350,286 | $341,681 | $671,958 | $2,957.00 | $14,939 |
| 15 | $528,470 | $487,846 | $778,984 | $3,428.00 | $17,080 |
| 20 | $740,937 | $663,694 | $903,056 | $3,973.00 | $19,561 |
| 25 | $994,545 | $876,187 | $1,046,889 | $4,606.00 | $22,438 |
*Buyer equity is net of 5% selling costs (realtor + legal). Renter portfolio is liquid.
Morty notes: A lot of "rent vs. buy" calculators ignore closing costs, selling costs, and maintenance — making buying look better than it really is. I factor them all in so you get the real picture. Open the "Ownership Costs" panel on the left to dial in your local property tax rate and expected maintenance spend.
Pro tip: Closing costs in Canada typically run 1.5–4% depending on province. Ontario and BC have the highest land transfer taxes. And don't forget — when you eventually sell, the realtor takes ~5%. That $52,344 at exit is money you never see. The renter's portfolio? Fully liquid, no commission required.