How the comparison stays like-for-like
The buyer pays the deposit and purchase costs, then mortgage and maintenance. The renter starts by investing the same deposit and purchase costs. Each month, the renter also invests the amount by which owner housing costs exceed rent—or withdraws the reverse difference. Buyer wealth is the estimated property value minus the remaining mortgage.
The result is highly assumption-sensitive
Property prices, rents and investments do not rise smoothly. Maintenance can be lumpy, transaction costs matter, and investment returns are uncertain. Test pessimistic and optimistic scenarios instead of relying on one output.
Important exclusions
The model excludes property purchase tax unless included in buying costs, sale costs, service charges, insurance, tax on investments, mortgage fees and the non-financial value of flexibility or security. It is an educational comparison, not financial advice.
Reviewed by the Properties & Homes editorial team
Last reviewed: 14 August 2026.