Rent or buy — what makes sense for you?
Compare how your wealth develops over the years — whether you buy a property or rent and invest the difference instead.
Simplified model — not individual financial advice. Taxes, extra repayments and market volatility are deliberately left out. Treat the result as orientation.
Your assumptions
Notary, transfer tax, broker fee (region-dependent)
Reserves for repairs, common charges, etc.
e.g. long-term ETF savings plan
Your result after 20 years
Renting comes out ahead
Difference: €211,205
In this model, you end up better off by renting and consistently investing the difference.
Wealth development over the years
BuyingRenting
Wealth if you BUY
Property value minus remaining loan
€443,170
Wealth if you RENT
Equity + invested difference
€654,375
Calculation details
Acquisition costs€45,000
Loan amount€405,000
Monthly annuity€1,958 / month
Monthly maintenance (assumed)€450 / month
Total monthly cost of buying€2,408 / month
Remaining loan at end€162,914
Property value at end€606,085
Rent in year 20€2,080 / month
Want to see the full picture of your finances?
With the free Financial Check you get an honest assessment of your whole situation in 60 seconds — overview, security, future.
Methodology
How we calculate
To keep the result transparent, we explain exactly what happens under the hood — and which assumptions we deliberately simplified.
If you buy
- Loan:Purchase price + acquisition costs − equity. Acquisition costs (notary, transfer tax, broker) do not become wealth.
- Annuity:Constant monthly payment from interest + initial principal repayment — unchanged for the entire term. No extra repayments.
- Maintenance:Fixed percentage of the purchase price per year (default 1.2 %). Covers repairs, common charges, etc. — as a monthly extra cost.
- Remaining loan:Calculated mathematically correct via the classic annuity formula — month by month.
- Property value:Grows annually with your chosen appreciation rate (default 1.5 % p.a., roughly aligned with the long-term inflation target).
- Buyer wealth:Property value at the end minus remaining loan.
If you rent
- Starting capital:Your equity stays liquid and is invested immediately — e.g. in a broadly diversified ETF.
- Rent increase:Your base rent rises every year by the chosen percentage (default 2 % p.a.).
- Difference investment:As long as your rent is below the monthly cost of buying, you invest the difference consistently — as a monthly savings plan.
- Investment return:Your capital grows annually at the assumed return (default 6 % p.a.) — simplified end-of-year compounding.
- When rent > cost of buying:The savings rate drops to 0 — but your existing capital keeps compounding.
- Renter wealth:Equity + all invested contributions + returns, accumulated over the period.
What we leave out
- Taxes:No consideration of speculation tax, capital gains tax on investment returns or rent control limits.
- Extra repayments:Amortization stays constant — no bonus payments or refinancing changes after 10/15 years.
- Market volatility:Both investment return and property appreciation are assumed to be steady — real markets fluctuate.
- Inflation:Buying costs + maintenance stay nominal. Rent increase is the only modeled inflation.
- Quality of life:Flexibility, attachment to a place, emotional value — not financially captured, but often decisive.
How to read the result
The difference only shows the financial endpoint after 20 years — it says nothing about your monthly cashflow, your sense of security or whether home ownership is emotionally right for you. A serious decision always considers both layers.
Note: the calculation is based on a constant annuity, annual rent increases and lump-sum assumptions for maintenance and investment return. Actual values can deviate significantly. This page is not investment or financial advice.