7%EC%96%B5 Jeonse vs Rent

Which is better: 7%EC%96%B5 Jeonse or monthly rent?

Jeonse Deposit
7%EC%96%B5
Estimated Rent
3,208,333원
Rent Deposit: 3,500만원
Jeonse Monthly Opportunity Cost
2,333,333원
Rent Monthly Total Cost
3,325,000원

Result at 4% Rate

🏠
Jeonse is better!
Monthly 991,666원 savings
Break-even Rate5.8%

Jeonse is better above this rate

📊 Comparison by Investment Rate

RateJeonseRentDifferenceRecommendation
2%1,166,667원3,266,666원+2,100,000원🏠 전세
3%1,750,000원3,295,833원+1,545,833원🏠 전세
4%2,333,333원3,325,000원+991,666원🏠 전세
5%2,916,667원3,354,166원+437,500원🏠 전세
6%3,500,000원3,383,333원-116,667원🏢 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 7%EC%96%B5 Jeonse or rent better?

At 4% return, rent costs 3,325,000원/mo, Jeonse opportunity cost is 2,333,333원/mo. Jeonse is better.

What's the opportunity cost of 7%EC%96%B5 Jeonse?

At 4% return, monthly opportunity cost is 2,333,333원.

At what rate is Jeonse better?

Jeonse is better when investment return is above 5.8%.