Will buying actually leave you better off?
Compare the wealth each choice leaves behind, not just this month's payment. The model gives both sides the same starting cash and monthly budget, then tracks the home, mortgage and investments together.
Saved setupsNothing is saved automatically
Both paths use the same starting cash and monthly housing budget. Any spare money is invested at 5%.
| Home value | £403,175 |
|---|---|
| Mortgage left | £204,228 |
| Mortgage payment today | £1,292.05 |
| Buying: interest, maintenance and transaction costs | £147,269 |
| Rent paid | £188,255 |
Buying first moves ahead around year 1. A shorter stay can still favour renting.
- Buying has the stronger modelled outcomeThe gap is £111,753, but house prices and investment returns can easily move a long-range result.
- The comparison treats principal as wealth£104,274 of mortgage interest is a cost; the principal you repay becomes equity instead.
- Lifestyle flexibility is not pricedMoving freedom, security of tenure, renovation choices and major one-off repairs still matter even when the pounds are close.
A projection from your assumptions, not a house-price forecast or financial advice. Buying and selling costs vary.
How this calculation works
The buyer starts with home equity and pays mortgage interest, maintenance, purchase tax and selling costs. The renter invests the deposit and buying cash instead. Each month, whichever option costs less invests the difference. House prices, rent and investments compound monthly using your assumptions.