Should I buy or continue renting?

We answer this question extensively in this interactive article. Generally, this comparison boils down to what you are currently renting and what you could buy. Assuming these two are similar, we can then look at the costs of both situations.

Example

Let’s say your rent costs are 1.000 € per month and buying a similar property would cost you 350.000 € in total. To compare these two, we would need to calculate the monthly rate of buying. This is calculated by taking the interest rate + the principal repayment and multiplying by the loan amount and dividing by 12 months. For example

350.000 € * ( 1,50 % + 2,00 % ) / 12 = 1.020 € per month.

It’s important to understand that the cost of buying is not 1.020 € per month. It’s only the 1,50% or 437 € per month. So over 10 years, you would look at the rent saved, 1.000 € and subtract 437 €. In our calculator, we then also add that both the property and rent can increase.

To calculate whether renting or buying is better for you, you can read this interactive article.

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