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NGRent vs. buy calculator
The decision between renting and buying is a crucial financial choice. Use this handy calculator to find out what decision is best for you.
Page written by AI. Reviewed internally on June 25, 2024.
The decision between renting and buying is a crucial financial choice. Use this handy calculator to find out what decision is best for you.
Page written by AI. Reviewed internally on June 25, 2024.
This calculator is intended for illustration purposes only and exact payment terms should be agreed with a lender before taking out a loan.
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You will save ₦ per month and ₦ in total.
Rent monthly cost
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Rent total cost
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Buy monthly cost
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Buy total cost
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Get a quoteA rent vs. buy calculator is a financial tool designed to help you evaluate the financial implications of renting versus buying a property, and assists you in making an informed decision by comparing the costs associated with renting and buying over a specified period.
Several factors can influence the decision between renting and buying. These factors can have a big impact on the financial outcome and should be carefully considered.
Financial stability and flexibility: Your current financial situation can greatly affect your ability to secure a mortgage. Renting offers more flexibility in case of financial changes or unexpected expenses.
Location and housing market conditions: The market in the area you’re considering can significantly influence the decision. High-demand areas may have higher property prices, making renting a more practical option.
Duration of stay: Consider how long you plan to stay in the area. If you anticipate moving within a few years, renting may be more cost-effective.
Upfront costs and down payment: Buying a home typically requires a significant down payment, which can be a barrier for some buyers. Renting usually involves lower upfront costs.
Mortgage interest rates: Interest rates impact the cost of financing a property. Higher rates can lead to higher monthly mortgage payments and may influence the affordability of buying.
Opportunity cost of down payment: The down payment used for buying a property could potentially be invested elsewhere, generating returns. This is known as the opportunity cost, and it should be considered when deciding to buy.
Market rent vs. mortgage payment: Compare the monthly cost of renting a similar property to the monthly cost of owning. This can provide a clear financial comparison.
Inflation and economic factors: Economic conditions, including inflation rates and employment stability, can impact both the market and the overall financial landscape
