How long do I need to own to break even?
Typically three to seven years, depending on transaction costs, appreciation and rent levels. The breakeven year is shown in the result.
Property · 05
Buy or rent? The honest math.
Both scenarios projected month by month. Includes deposit opportunity cost, transaction costs, maintenance, and the year buying actually overtakes rent-plus-invest.
Currency
The property
The alternative
Returns and horizon
Better choice at horizon
Buying wins
£10,038 advantage at year 10
Buy net wealth
£330,742
Rent + invest net wealth
£320,705
Buy overtakes
Year 5
Buying wins, but thinly. Sensitivity-check the appreciation and rent-inflation assumptions; a flat year or two can flip the result.
Month-by-month simulation. Transaction costs are split 50/50 between purchase (deposit + costs invested in the rent path) and sale. Maintenance scales with home value. Property tax assumed constant today's value.
Buy or rent, contextualised.
Worth runs buy-vs-rent against your full balance sheet, savings rate and life plans. Join the waitlist.
Frequently asked questions
Does this account for leverage?
Implicitly yes, the home appreciates on the full property value while you only put down the deposit. That's leverage working in your favour during appreciation, against you during a downturn. Stress-test by setting appreciation to 0% or -1%.
Why does the rent path get to invest the deposit?
Because if you choose to rent, that capital stays free. The deposit plus transaction costs are opportunity cost on the buy side, they could otherwise compound in the chosen investment for the horizon.