August 2nd, 2012
Zillow is offering a new app that helps you decide whether you should rent or buy based on what they call “the breakeven horizon.”
Deciding whether you should rent or buy largely depends on the amount of time you plan to stay in the same place because there’s a threshold for when buying makes more sense financially than renting.
For example, if the average breakeven horizon for Portland 2.8 years, and you plan to live there for a year, it would make more sense to rent.
But if you plan to live there for 2.8 years or longer, after purchase and selling costs, taxes, maintenance, appreciation and opportunity costs, you would have more money when you sold the house than you would if you had rented.
Try the calculator out here!