Steve CohenHawai‘i Preferred Properties
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Decision Modeling

Buy vs. Rent Comparison

A side-by-side projection of buying a Hawai‘i home versus renting — modeling appreciation, mortgage amortization, taxes, and the opportunity cost of investing the down payment elsewhere.

Purchase Scenario

Home Price$2,500,000
Down Payment20% — $500,000
Interest Rate6.75%
Loan Term30 years

Rental Scenario

Time Horizon

Years to Compare10 years

After 10 Years

Renting wins

by $1,760,255 in projected net wealth.

Buyer Net Position-$311,333
Renter Portfolio$1,448,921
Home Value$3,700,611
Home Equity$1,994,591
Breakeven Year
Monthly P&I$12,972
Upfront (Down + Closing)$550,000

Estimates only. Real outcomes depend on lender, market timing, tax situation, and lifestyle. Consult Steve and a tax advisor for tailored guidance.

Year-by-Year

Wealth trajectory

YearHome ValueEquityBuyer NetRenter PortfolioAdvantage
1$2,600,000$621,315-$229,517$626,536Rent +$856,053
2$2,704,000$748,114-$255,455$705,707Rent +$961,162
3$2,812,160$880,661-$277,642$787,624Rent +$1,065,266
4$2,924,646$1,019,231-$295,894$872,407Rent +$1,168,302
5$3,041,632$1,164,118-$310,021$960,183Rent +$1,270,204
6$3,163,298$1,315,627-$319,821$1,051,084Rent +$1,370,905
7$3,289,829$1,474,080-$325,082$1,145,253Rent +$1,470,335
8$3,421,423$1,639,817-$325,580$1,242,841Rent +$1,568,420
9$3,558,280$1,813,195-$321,079$1,344,007Rent +$1,665,086
10$3,700,611$1,994,591-$311,333$1,448,921Rent +$1,760,255