{
  "@context": "https://schema.org",
  "@type": "Dataset",
  "name": "Should I invest my down payment instead of buying a house?",
  "description": "Only if you'll actually invest it and expect to move within the break-even period. $42,000 down plus $12,600 closing costs invested at 6% grows to about $82,100 in 7 years; the same purchase builds roughly $160,500 of post-sale equity at 3.5% appreciation — but owning also costs ~$1,080/mo more than rent, which the renter can invest.",
  "url": "https://www.revenuelab.fyi/answers/should-i-invest-my-down-payment-instead-of-buying",
  "dateModified": "2026-10-01",
  "creator": {
    "@type": "Organization",
    "name": "RevenueLab",
    "url": "https://www.revenuelab.fyi"
  },
  "license": "https://creativecommons.org/licenses/by/4.0/",
  "keywords": [
    "Down Payment Opportunity Cost Calculator",
    "Rent vs Buy Net Worth Calculator"
  ],
  "distribution": {
    "@type": "DataDownload",
    "contentUrl": "https://www.revenuelab.fyi/api/public/page.json?path=answers%2Fshould-i-invest-my-down-payment-instead-of-buying",
    "encodingFormat": "application/json"
  },
  "json": {
    "type": "answer",
    "question": "Should I invest my down payment instead of buying a house?",
    "shortAnswer": "Only if you'll actually invest it and expect to move within the break-even period. $42,000 down plus $12,600 closing costs invested at 6% grows to about $82,100 in 7 years; the same purchase builds roughly $160,500 of post-sale equity at 3.5% appreciation — but owning also costs ~$1,080/mo more than rent, which the renter can invest.",
    "tableTitle": "Down payment invested vs home equity after 7 years",
    "columns": [
      "Path",
      "Value at year 7",
      "Notes"
    ],
    "rows": [
      {
        "label": "Invest $54,600 at 6%",
        "value": "≈$82,100",
        "note": "Closing costs count too — they're spent at purchase"
      },
      {
        "label": "Home equity after 6% selling cost",
        "value": "≈$160,500",
        "note": "≈$534,400 value × 0.94 − ≈$341,800 loan balance"
      },
      {
        "label": "Full net worth incl. monthly gap",
        "value": "Rent ≈$179,900 vs buy ≈$160,500",
        "note": "Renting leads at year 7; buying overtakes in year 11"
      }
    ],
    "context": "This isolates up-front cash only. Owning usually costs more per month early on; if the renter invests that monthly gap too, the result can flip. Use the net-worth calculator for the complete comparison.",
    "methodology": "Assumptions (all editable in the calculators): $420,000 home (≈2025 US median, NAR), 10% down, 6.5% 30-year fixed (Freddie Mac PMMS range), 3.5%/yr appreciation and rent growth (long-run FHFA HPI / CPI shelter), 1.1% property tax, 1% maintenance, $1,900/yr insurance, 3% buy and 6% sell costs, 6%/yr investment return. Excludes mortgage interest deduction, capital-gains tax and PMI.",
    "dateModified": "2026-10-01",
    "relatedCalculators": [
      {
        "label": "Down Payment Opportunity Cost Calculator",
        "to": "/down-payment-opportunity-cost-calculator"
      },
      {
        "label": "Rent vs Buy Net Worth Calculator",
        "to": "/rent-vs-buy-net-worth-calculator"
      }
    ],
    "relatedReading": [
      {
        "label": "How to calculate rent vs buy",
        "to": "/answers/how-to-calculate-rent-vs-buy"
      }
    ]
  }
}