: It counts the massive "sunk costs" of buying, such as the initial down payment, closing costs, and the 5% to 6% agent commissions you pay when you eventually sell.
Rather than pushing a one-size-fits-all agenda, it pits the unrecoverable costs of renting against the unrecoverable costs of homeownership across a 10-year span. trulia's rent vs buy
: It pulls active market data to compare an identical tier of properties (e.g., comparing a 2-bedroom rental against the purchase price of a similar 2-bedroom condo). : It counts the massive "sunk costs" of
Most basic calculators only compare a monthly rent check to a monthly mortgage payment. Trulia’s model—developed and iterated upon by its economic research team—uses a multi-step net present value (NPV) calculation to account for the opportunity cost of your money. The engine weighs five distinct pillars: Most basic calculators only compare a monthly rent
: It aggregates mortgage principal and interest, property taxes, hazard insurance, and HOA fees, and factors in future inflation and rent appreciation.