Home Ownership vs. Index Fund Investment

Compare the financial outcomes of buying properties versus investing in the S&P 500

General Settings

Set the time horizon and other general parameters

Time Horizon (Years): 3030 years

Use historical S&P 500 data

Investment Settings

Configure your index fund investment scenario

Monthly Rent ($)

Initial Investment: $100,000

This is equal to the down payment amount of your primary property

Expected Annual Return (%): 7%7%

The S&P 500 has historically returned about 7% annually after inflation.

Primary Property

Your first property purchase

Property Price ($)

Down Payment: 20%20%

$100,000

Mortgage Rate: 4.5%4.5%

Loan Term (Years)

Property Tax: 1%1%

Annual Repair: 1%1%

Annual Insurance ($)

Closing Costs: 3%3%

Annual Appreciation: 3%3%

The average home appreciation rate in the US is around 3-4% annually.