- maintenance (1%/yr)
- property taxes (1-2%/yr)
- utilities included in rent
- opportunity cost (8% return on alternativee investments)
- transaction costs (4% to buy, 6% to sell)
- rent growth (=home price growth IMO)
- inflation (should =rent and home price growth IMO)
- mortgage interest deduction
Etc etc. The NYTimes calculator includes all of these. That said $3k/mo for a $450k home is heavily in favor of renting. The approximate cost to own the home is only ~$1500/mo.
In SF a property that costs $3k/mo to rent might cost closer to $800k. That comes out to about the same cost either way, according to the assumptions I stated above.
https://www.nytimes.com/interactive/2014/upshot/buy-rent-cal...
You have completely neglected:
Etc etc. The NYTimes calculator includes all of these. That said $3k/mo for a $450k home is heavily in favor of renting. The approximate cost to own the home is only ~$1500/mo.In SF a property that costs $3k/mo to rent might cost closer to $800k. That comes out to about the same cost either way, according to the assumptions I stated above.