With home prices in Arcadia continuing to rise and interest rates stabilizing around 6.25%, many residents are asking: “Is it better to buy or rent?” Let’s compare the numbers for a $1,199,000 home purchase using 95% conventional financing with forecasted appreciation of 5.54% per year over the next 9 years.

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📊 Buying Scenario

• Home Price: $1,199,000
• Down Payment (5%): $59,950
• Loan Amount: $1,139,050
• Interest Rate: 6.25%
• APR: 6.397%
• Monthly Mortgage (P&I): ~$7,006
• Property Taxes (1.25%): ~$1,249/month
• Home Insurance + PMI + Maintenance: ~$900/month
• Total Monthly Payment: ~$9,155/month

📈 Appreciation & Equity

• Annual Appreciation: 5.54%
• Estimated Home Value in 9 Years: ~$2,010,000
• Estimated Loan Balance in 9 Years: ~$1,021,000
• Estimated Equity in 9 Years: ~$989,000

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🏠 Renting Scenario

• Current Rent Estimate for Comparable Home in Arcadia: ~$5,500/month
• Annual Rent Increase Estimate: 4%
• Total Rent Paid Over 9 Years: ~$664,000
• Equity Gained: $0

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💡 Summary

Metric	Buying	Renting
Total Cost Over 9 Years	~$987,000 (net of equity)	~$664,000
Estimated Equity Gained	~$989,000	$0
Net Gain/Loss	+$2,000+ in equity vs cost	-$664,000 (no equity)

🧠 Bottom Line: Even though buying has higher upfront and monthly costs, the long-term appreciation in Arcadia builds substantial wealth. After 9 years, you could walk away with nearly $1 million in equity, far outpacing the cost of renting.