Lease vs. Buy Property Investment Decision Tool

Lease vs. Buy Property Decision Analyzer

General Information

Comparison Period (Years):

Property Location (For your reference):

Buying Scenario Details

Property & Purchase:

Property Purchase Price ($):

Down Payment:

Type:

Upfront Closing Costs (Buyer side):

Type:

Mortgage Details (If financing):

Mortgage Interest Rate (% p.a.):

Loan Term (Years):

Annual Ownership Costs:

Property Taxes:

Type:

Homeowners Insurance ($ per year):

Maintenance & Repairs:

Type:

HOA Fees ($ per year) (If applicable):

Future Projections:

Estimated Property Appreciation Rate (% p.a.):

Estimated Selling Costs at End of Period (% of future sale price):

Leasing Scenario Details

Initial Monthly Rent ($):

Annual Rent Escalation Rate (%):

Renter's Insurance ($ per year) (Optional):

One-time Leasing Costs ($) (Non-refundable, e.g., broker fees):

Opportunity Cost:

Estimated Annual Rate of Return on Invested Upfront Buying Costs (%):

This rate is applied to the sum of what your down payment and buyer closing costs would have been if you had bought.

Lease vs. Buy Comparison Summary

Understanding the Comparison:

Upfront Costs: Initial cash needed for buying (down payment + closing costs) vs. leasing (one-time fees).
Total Housing Payments: Sum of all mortgage payments (P&I), taxes, insurance, maintenance, HOA for buying vs. total rent and renter's insurance for leasing, over the comparison period.
Property Equity (Buying): Estimated property value minus remaining loan balance at the end of the period.
Investment Growth (Leasing): Estimated future value of the funds you *didn't* spend on buying (down payment & buyer closing costs), had you invested them instead.
Net Worth Change: This is a key metric.
- For Buying: (Final Property Value - Remaining Loan - Selling Costs) - (Total cash spent on non-equity building items like interest, taxes, insurance, maintenance, HOA, and upfront closing costs). It represents the net financial benefit or cost considering equity gain and all expenses.
- For Leasing: (Growth from Investing the 'Saved' Upfront Buying Money) - (Total Rent Paid + Other Non-refundable Leasing Costs).
A more positive "Net Worth Change" is generally better.

Disclaimer: This analysis is based on your inputs and estimates, which can be uncertain (e.g., appreciation rates, investment returns). Real estate and investment markets are volatile. This tool does not include all potential tax implications (which vary greatly by location and individual circumstances) or non-financial factors (lifestyle, flexibility, etc.). It is for informational purposes only and does NOT constitute financial or investment advice. Always consult with qualified financial, real estate, and tax professionals before making a decision.