5%EC%96%B5 Jeonse vs Rent

Which is better: 5%EC%96%B5 Jeonse or monthly rent?

Jeonse Deposit
5%EC%96%B5
Estimated Rent
2,291,667원
Rent Deposit: 2,500만원
Jeonse Monthly Opportunity Cost
1,666,667원
Rent Monthly Total Cost
2,375,000원

Result at 4% Rate

🏠
Jeonse is better!
Monthly 708,334원 savings
Break-even Rate5.8%

Jeonse is better above this rate

📊 Comparison by Investment Rate

RateJeonseRentDifferenceRecommendation
2%833,333원2,333,334원+1,500,000원🏠 전세
3%1,250,000원2,354,167원+1,104,167원🏠 전세
4%1,666,667원2,375,000원+708,334원🏠 전세
5%2,083,333원2,395,834원+312,500원🏠 전세
6%2,500,000원2,416,667원-83,333원🏢 월세

💡 Rent Choice Tips

  • Higher investment returns mean higher opportunity cost for Jeonse.
  • Consider loan interest if borrowing for Jeonse deposit.
  • Factor in Jeonse fraud risk and insurance costs.

FAQ

Is 5%EC%96%B5 Jeonse or rent better?

At 4% return, rent costs 2,375,000원/mo, Jeonse opportunity cost is 1,666,667원/mo. Jeonse is better.

What's the opportunity cost of 5%EC%96%B5 Jeonse?

At 4% return, monthly opportunity cost is 1,666,667원.

At what rate is Jeonse better?

Jeonse is better when investment return is above 5.8%.