PRACTICAL GUIDE · UTILIA WORK
Rent or buy? The numbers you need to compare
The decision involves more than the monthly mortgage payment.
1 min read
Compare total costs
Buying usually involves a deposit, taxes, legal and registration fees, maintenance, building charges and insurance. Renting may require a security deposit and other expenses, but generally needs less initial capital.
An illustrative example
An €200,000 property with 80% financing requires a €40,000 deposit, plus applicable taxes and costs. Actual financing depends on the lender and your circumstances.
Consider how long you will stay
If you expect to move soon, upfront buying costs can make a large difference. For long-term stability, consider mortgage terms and the opportunity cost of your deposit.
Allow for risk
Property values can fall. Rent may rise subject to the contract and local rules. Include unexpected repairs and possible income changes.
Compare three scenarios
Model a cautious case, a central case and an adverse case. Do not treat future property appreciation as guaranteed.
General educational information. Examples are illustrative; check the conditions and rules applicable to your situation before making important decisions.
Explore more guides →