The Browns are considering whether to buy a home for $50,000 with a $5,000 down payment and 15-year, 7.5% mortgage of $45,000, or rent the home for $525 per month. If they buy, the home is expected to appreciate 2% annually while property taxes are 1.5% of the value. Rent will increase 3% annually. After 2 years of ownership, their equity in the home will be calculated. Annual costs of buying are compared to renting after 1 and 10 years. Reasons for renting instead of buying are explored, even if more expensive long-term. Net costs of owning for 10 years versus renting are calculated.