Rent vs buy scenario

• Based on Average rent  is around $3,300/month
• Rent forecasts for Southern California—including areas like Inland Empire—suggest modest increases. Rents are expected to rise by about $110–$148/month over two years, roughly 3–4% growth
• Home appreciation in Chino has averaged about 6.96% annually over the past decade

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Rent Scenario (10-Year Projection)

Assuming $3,300/month starting rent, growing at 3% per year:

Year	Rent Estimate
1	$3,300
2	$3,399
5	~$3,825
10	~$4,437

Total rent paid over 10 years: Approximately $430,000

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Buy Scenario (10-Year Projection)

Assumptions:

• Purchase Price: $650,000
• Down Payment (10%): $65,000 → Loan: $585,000
• Interest Rate: 6.375% on 30-year fixed
• Monthly principal & interest: ~$3,650
• Property taxes (1.25%): ~$677/month
• Insurance: $120/month
• Total monthly payment: ~$4,447

Year 1-10 Total Payments:

• Monthly × 120 months = ~$533,640

Home Value Growth:

Appreciation at ~6.96% annually yields:

• Home value in Year 10 ≈ $650,000 × (1.0696)^10 ≈ $1.24 million
• Estimated equity = Value – remaining mortgage balance (~$535,000) ≈ $705,000 in equity

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Summary Comparison over 10 Years

Scenario	10-Year Cost (Payments)	Future Value / Equity	Key Observations
Rent	~$430,000	$0 equity	No ownership or tax benefits
Buy	~$534,000	~$705,000 equity	Builds wealth via appreciation and equity

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Insights

• Buying costs more upfront (about $100K more in payments over 10 years) but creates significant equity—over $700K.
• Renting may be cheaper monthly but offers no long-term financial upside.
• Rent escalation further increases the disparity over time.
• Buying also opens doors for tax deductions (interest, property taxes) and inflation hedging through fixed-rate mortgage stability.

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