Why I Still Rent (Even Though I Can Afford Buy): The Math on a $500K House that Actually Costs $1.5M

Video Description

**PART 2 will come out in a few weeks!! If you have a city or town you want me to feature for a rent vs. buy comparison, leave it in the comments!!** Buying a home isn’t automatically “better” than renting—especially in 2025. In this video, I break down the real math behind rent vs. buy: down payment + closing costs, mortgage interest, property taxes, insurance, and annual maintenance (1–3%)—then stack it against the opportunity cost of investing instead. We’ll also cover lifestyle factors (job stability, flexibility, timeline), what “equity” actually is, and how to think about break-even sale prices so you can make a clear, values-aligned choice. Chapters below 👇 plus resources & next steps. You’ll learn: 👉🏻 The true, all-in cost of a $500K home at ~6.5% over 30 years 👉🏻 What is equity and why is it illiquid (and why that matters) 👉🏻 Property taxes, insurance, maintenance—how to budget realistically 👉🏻 When renting can be the smarter financial move TIMESTAMPS: 00:00 Why I rent (even though I can afford to buy) + what this video covers 01:06 Not anti-homeownership—how to buy without lifestyle sacrifice 02:00 “Rent = throwing money away”? Why that’s outdated thinking 04:10 Ground rules: nuance, primary residence only, emotions are valid 06:05 Upfront costs: 20% down, closing/inspection, furnishing 08:00 Ongoing costs: property taxes + 1–3% annual maintenance 10:00 Market check: overvaluation, high rates, and the refi myth 11:45 Lifestyle factors: flexibility, job stability, 5–10 year horizon 14:00 Equity explained (and why it’s illiquid) + mortgage interest shock 25:05 Totals on a $500K home ($1.583M outflow) + break-even math & opportunity cost BREAK YOUR BUDGET RESOURCES: 💸 Personal Finance Dashboard: https://breakyourbudget.com/personal-finance-dashboard 💸 Basic Budgeting Template: https://breakyourbudget.com/basic-budgeting-template 💸 NEW FI/RE Template: https://breakyourbudget.com/fire-template ✅ Subscribe to Break Your Budget Weekly: https://breakyourbudget.com/newsletter 📖 My Books: https://breakyourbudget.com/book 👩🏼‍💻 Task Management System + Promotion Template: https://breakyourbudget.com/own-your-career-template FREE DOWNLOADS: 💸 Recession Guide: https://breakyourbudget.com/recession-guide ✅ Monthly Audit Checklist: https://breakyourbudget.com/monthly-audit-checklist ✍🏻 Personal Finance Starter Kit: https://breakyourbudget.com/pf-starter-kit All Other Resources: https://breakyourbudget.com/links 👩🏼‍💻 Inquiries: [email protected] 📸 Instagram: https://www.instagram.com/breakyourbudget/ 📲 Tiktok: https://www.tiktok.com/@breakyourbudget 📸 Instagram: ⁠⁠https://www.instagram.com/michela_alloccaa 💸 Break Your Budget LTK: https://www.shopltk.com/explore/MichelaAllocca/