Trulia just recently released a new on-line Rent vs Buy Calculator that might be of interest to you.
No matter what the calculator generates, I would advise you sit down with a tax professional to review your findings and personal financial situation.
Given you are looking to possibly buy you might also may want to review this blog:
"The Top 4 Challenges Buyers & Sellers will face in 2014!â€
An important part of your decision should be, would you have to sell the home after five years or could you rent it out? If you look at my chart at http://julianalee.com/reinfo/mortgage.htm you can see that a $500k loan at 3% interest will build up about $55,000 of equity in five years. If the property appreciates, you would have more equity. There are also tax benefits which reduce the net cost of buying a home. My web page also has a link to the Freddie Mac rent vs. buy calculator so you can see the affects of different numbers.
By buying now, part of your mortgage payment acts like a forced savings plan, causing you to build up your wealth. If you don't buy would you spend that money or would you save it? At the end of five years you could be in a much better position to buy a home you like more.
Top 2 agent nationwide at Keller Williams Realty, the nations largest
Over 20 years experience
Over 1,000 homes sold in Santa Clara County and San Mateo County
Keller Williams Realty Palo Alto
Cal BRE 01191194
If you continue to rent at the end of 5 years you have paid your landlords mortgage to the tune of $120,000. If you are buying you will paying into your own savings account and in 5 years sell, or lease out the property.
It only makes sense to buy if you can afford it. If you can't afford the payments on the purchase, then continue to rent. But, I would hate to give someone other than myself $120,000.