Buy vs. rent, run the long hold
The 36-month math answers whether buying beats renting on a single PCS tour. This tool answers the question a local buyer actually has: hold the property 7 to 10 years or longer, and how many years does it take before owning is the cheaper path, all in.
Buying
2.15% of the loan amount, financed. That adds about $12,900 to the balance.
The buttons follow the VA purchase schedule and your down payment. You may be exempt if you receive VA disability compensation, are a surviving spouse receiving DIC, or are an active-duty Purple Heart recipient.
Renting
Analysis
Own vs rent. Owning is $1,269 more per month.
At year 10
Cumulative rent vs net cost to own
Within your horizon
Owning costs $1,269 more per month on day one, but by year 10 you are $165,954 ahead once equity is counted. Owning becomes the cheaper path in year 3.
Positive means owning is ahead of renting.
How this works
We simulate every month of ownership. Principal and interest use standard amortization, with any VA funding fee financed into the loan. Property tax is figured each year from the home value at the start of that year, minus the home exemption, at the rate per $1,000. HOA, insurance and maintenance rise once a year by the increase you set. Rent rises once a year too.
Net cost to own is all cash spent (down payment, closing costs and monthly costs) minus your equity. If you check the sold option, equity is reduced by selling costs. Breakeven is the first month when net cost to own is at or below total rent paid.
Not modeled: investment return on the down payment, the mortgage interest tax deduction, PMI on conventional loans under 20% down, and capital gains tax.
Frequently asked questions
Is renting really throwing money away?
No. Rent buys you a place to live and the freedom to leave. Owning also has costs that build no equity, like interest, taxes, insurance and upkeep. The real question is which path costs less over the years you plan to stay, and that is what this tool measures.
Why doesn't this include investing the down payment?
Investment returns vary widely and depend on your choices, so we left them out to keep the math honest and simple. If you would invest a large down payment instead, owning needs a bit more time to win. With 0% down VA loans, this matters very little.
What property tax rate should I use on Oahu?
For an owner-occupied home, use the Honolulu residential rate, which is the default here, and keep the home exemption on. Non-owner-occupied homes may fall under Residential A with higher rates. Confirm current rates with the City and County of Honolulu.
What if I PCS before break-even?
You may lose money if you sell early, mostly because of selling costs. Many service members keep the home and rent it out instead. Run the Keep It or Sell It tool to compare both options before you buy.
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