Real estate
Is it better to rent or buy a home?
Is it cheaper to rent or buy? Net cost comparison with mortgage, taxes, maintenance and appreciation over N years.
Quick answer
The classic question: keep paying rent or buy and build equity? Over N years, total rent = monthly payment × 12 × N. Net cost of buying = down payment + closing costs + mortgage instalments + property taxes, condo and maintenance − equity if you sold at the end (appreciated value minus remaining loan). Example — €200,000 flat, €700/month rent, 20% down, 3% over 25 years, 2% appreciation: at 10 years rent is ~€84,000 out with nothing back; buying often shows a lower net cost because equity offsets much of what you paid in. The break-even row tells you after which year buying wins for your inputs.
Monthly rent
Buy
Advanced costs (optional)
Best option at horizon
Buying to live
- Buy beats rent after
- 5 years
- Rent — total cost
- $84,000.00
- Equity built
- €0
- Buy to live — net cost
- $61,018.56
- Equity at horizon
- 33,929.46
- Mortgage payment
- $758.74
Related calculators: Mortgage payment · Rental yield · Cap rate · Price per m²
⚠️ Indicative estimate only — not financial or tax advice. Consult a qualified advisor or accountant before deciding.
Net cost = cash out (down, fees, mortgage, taxes, maintenance) minus equity at the end. Airbnb subtracts gross revenue minus management. Ignores rent inflation, tax deductions and selling costs — use as a directional comparison.
How it works
Adjust advanced fields for notary fees, IMU, condo and maintenance — skipping them flatters buying unrealistically. For monthly instalment detail see the mortgage calculator; to compare listings use price per m². Want short-term rental in the mix? Open the rent vs buy vs Airbnb version.
Frequently asked questions
After how many years does buying beat renting?+
When cumulative rent exceeds the net cost of owning for the same period — equity from appreciation and principal repayment is the usual swing factor. High rent, low rates and solid appreciation shorten the break-even; cheap rent or expensive maintenance lengthen it.
Should I compare gross rent to the mortgage payment?+
No — that ignores equity, purchase costs, taxes and maintenance. A €700 rent vs €650 mortgage can still favour renting early years if you put little down and appreciation is weak. Use net cost over your real planned horizon (job stability, family plans).
What costs are easy to forget when buying?+
One-off purchase taxes and notary (often several % of price in Italy), annual IMU, condo extraordinary works, appliances and a maintenance reserve (~1% of value per year). Early mortgage years are mostly interest — principal builds slowly at first.
Does property appreciation guarantee buying wins?+
No — it helps equity but is uncertain. Flat or falling prices extend break-even or make renting clearly cheaper on a pure cash basis. Stress-test with 0% appreciation; if buying still wins on your timeline, the decision is more robust.