Buy vs rent tool
Buy vs rent a condo
Condo fees change the buy vs rent comparison: they replace some maintenance cost, but they rise, and special assessments can arrive. Test them here.
Example with default assumptions
After 10 years, buying finishes ahead of renting by about $30,215. On these assumptions buying overtakes renting after about 5.7 years, once selling costs are counted. The owner's first-month cash cost is $2,886, compared with $1,925 for the renter.
| Year | Home value | Mortgage balance | Buyer net worth | Renter net worth | Buying minus renting |
|---|---|---|---|---|---|
| 1 | $434,700 | $328,512 | $81,734 | $106,827 | −$25,093 |
| 2 | $449,914 | $320,684 | $104,226 | $124,246 | −$20,019 |
| 3 | $465,662 | $312,499 | $127,589 | $142,347 | −$14,758 |
| 4 | $481,960 | $303,942 | $151,856 | $161,162 | −$9,306 |
| 5 | $498,828 | $294,996 | $180,382 | $180,725 | −$343 |
| 10 | $592,451 | $243,773 | $321,295 | $291,080 | $30,215 |
What condo fees cover
Fees usually cover building insurance, exterior maintenance, common-area upkeep, management and a contribution to the reserve fund. They do not cover your unit’s contents, interior upkeep or personal liability insurance.
A weak reserve fund raises the risk of a special assessment. Review the reserve fund study and minutes before you rely on a low fee.
Questions people ask
Do condo fees count as unrecoverable?
Yes. They are a cost, not equity, so they weigh against ownership in buy vs rent.
How fast do condo fees grow?
It varies by building. The calculator defaults to 3.5% a year; test higher values for older buildings.
What is a special assessment?
A one-off charge to owners when the reserve fund cannot cover a major repair.
Educational estimates based on your inputs; not advice. See the methodology and assumptions.