Home Value vs. Market Investment
Compare buying a home against putting the same starting cash and monthly savings into the market.
Main Assumptions
Home price, expected sale price, financing, and hold period.
Implied appreciation: 1.72% / year
$360,000 cash into property
Monthly mortgage = $8,312
Home value vs. market investment
Market is ahead by $15,224,770 after 30 years.
Transaction & Ownership Costs
Closing costs, sale costs, maintenance, taxes, insurance, and improvements.
$45,000
$180,000
$1,500 / month
$1,650 / month
$300 / month
Rent & Market Investment Alternative
Rent avoided by owning and alternate market return assumptions.
Custom return
Index presets use approximate 30-year annualized historical total-return averages with dividends reinvested. They are planning assumptions, not forecasts.
Ownership cost summary
Today's monthly cash waterfall for the home value path.
This is a current-month comparison.
Year-by-Year Comparison
This shows estimated equity after sale versus the rent-and-invest alternative each year.
| Year | Home Value | Loan Balance | Equity After Sale | Annual Rent | Market Investment | House Advantage |
|---|---|---|---|---|---|---|
| 0 | $1.8M | $1.4M | $252K | $0 | $405K | $0 |
| 1 | $1.8M | $1.4M | $299.9K | $74.4K | $517.3K | -$217.4K |
| 2 | $1.9M | $1.4M | $349.4K | $75.9K | $639.8K | -$290.4K |
| 3 | $1.9M | $1.4M | $400.6K | $77.4K | $773.5K | -$372.9K |
| 4 | $1.9M | $1.4M | $453.6K | $79K | $919.7K | -$466.1K |
| 5 | $2M | $1.3M | $508.3K | $80.5K | $1.1M | -$571.1K |
| 6 | $2M | $1.3M | $565K | $82.1K | $1.3M | -$689.3K |
| 7 | $2M | $1.3M | $623.6K | $83.8K | $1.4M | -$822K |
| 8 | $2.1M | $1.3M | $684.3K | $85.5K | $1.7M | -$971K |
| 9 | $2.1M | $1.2M | $747.3K | $87.2K | $1.9M | -$1.1M |
| 10 | $2.1M | $1.2M | $812.5K | $88.9K | $2.1M | -$1.3M |
| 11 | $2.2M | $1.2M | $880.1K | $90.7K | $2.4M | -$1.5M |
| 12 | $2.2M | $1.1M | $950.2K | $92.5K | $2.7M | -$1.8M |
| 13 | $2.2M | $1.1M | $1M | $94.4K | $3.1M | -$2M |
| 14 | $2.3M | $1M | $1.1M | $96.2K | $3.4M | -$2.3M |
| 15 | $2.3M | $1M | $1.2M | $98.2K | $3.8M | -$2.6M |
| 16 | $2.4M | $963.5K | $1.3M | $100.1K | $4.3M | -$3M |
| 17 | $2.4M | $917K | $1.3M | $102.1K | $4.8M | -$3.4M |
| 18 | $2.4M | $867.8K | $1.4M | $104.2K | $5.3M | -$3.9M |
| 19 | $2.5M | $815.8K | $1.5M | $106.3K | $5.9M | -$4.4M |
| 20 | $2.5M | $760.7K | $1.6M | $108.4K | $6.5M | -$4.9M |
| 21 | $2.6M | $702.4K | $1.7M | $110.6K | $7.2M | -$5.5M |
| 22 | $2.6M | $640.8K | $1.8M | $112.8K | $8M | -$6.2M |
| 23 | $2.7M | $575.6K | $1.9M | $115K | $8.9M | -$7M |
| 24 | $2.7M | $506.6K | $2M | $117.3K | $9.9M | -$7.8M |
| 25 | $2.8M | $433.6K | $2.2M | $119.7K | $10.9M | -$8.8M |
| 26 | $2.8M | $356.4K | $2.3M | $122.1K | $12.1M | -$9.8M |
| 27 | $2.9M | $274.7K | $2.4M | $124.5K | $13.4M | -$10.9M |
| 28 | $2.9M | $188.2K | $2.5M | $127K | $14.8M | -$12.2M |
| 29 | $2.9M | $96.8K | $2.7M | $129.5K | $16.3M | -$13.7M |
| 30 | $3M | $0 | $2.8M | $132.1K | $18M | -$15.2M |