How many years does a homeowner need to live in a house for it to cost less than renting?

Answer 1

I've heard that it takes five years (living in it) approximately to make it worth buying a house.
However, if the cost of your mortgage is equal or less than the cost of rent (as it is in many cases) and you can deduct the cost of the interest you pay each year, I'd say it's a good deal right away.
Of course, if your mortgage is twice the cost of what you currently pay in rent, it may not be worth it to you...
It just depends on what type of house you're wanting to buy, the market you're looking to buy into, etc.
Good luck!

Answer 2

you'd need to do a proper financial analysis of the situation, including your alternative investment strategy, and then Monte Carlo the possible futures for the alternatives to come up with a useable answer.

Naturally, you haven't provided anywhere near enough data to do this.

My rule of thumb is to buy if and only if rent on the property would carry it today as a rental house, including full deductions and costs as a rental.

But then, maybe my alternative investment for my capital is different from yours.


GL

Answer 3

There are many factors that could determine that. However, one thing an owner can do that a renter can not is deduct the interest on the loan from his income taxes. This alone usually makes owning a good deal.