If you’re relocating to Louisville, or if you’ve been renting here for a while and are thinking about purchasing a home, you are probably curious about the Louisville real estate scene. In this market, does it make more sense to rent or buy a home?

Although the answer to this question depends on many factors, you can get a pretty good idea by using a rent vs. buy calculator. We’d be happy to help you run your scenario through a calculator. The calculator helps you compare the costs of renting to those of buying a home, by taking into account the effects of all the “hidden forces” that impact these costs:

Since there are all kinds of forces at work behind the scenes (interest, property taxes, tax savings, appreciation, opportunity costs, closing costs, selling costs, etc.), comparing the cost of renting to the cost of buying is a lot more complicated than just comparing the monthly mortgage payment to the monthly rent payment.

The calculator works by keeping a running tally of the most common expenses of owning and renting, while also factoring in the “lost opportunity costs” that come with buying or renting. An example of a lost opportunity cost is the return you could have earned by investing your money rather than spending it on a down payment.

No matter what a calculator tells you, there are a number of non-financial reasons why you might want to purchase a home of your own. There’s the security of knowing you can stay as long as you like. You’re free to decorate and remodel as you please. Also, it can sometimes be difficult to find a rental home that meets your family’s needs.

If you’d like access to the rent vs buy calculator, please don’t hesitate to contact us. We can help you weigh all the advantages and disadvantages so you can make the best possible decision.