Rent or Buy?
Compare renting against buying over the period you actually intend to stay, including the costs of buying and selling that make short stays expensive.
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Renting is not throwing money away and buying is not automatically an investment. Which is cheaper depends almost entirely on how long you stay, because the costs of buying and then selling are paid once and spread over that period.
Transaction costs are inputs here rather than assumptions — they vary from about 2% to well over 10% of the price depending on the country.
What is being compared
For buying: the deposit, every mortgage payment made during the stay, the yearly cost of owning, the cost of buying and of selling — less the equity you walk away with, which is the property's value at the end minus what is still owed. For renting: the rent, and nothing else.
Worked example
A 320,000 home with a 64,000 deposit at 6.5%, 5% to buy and 3% to sell, 1.5% a year to own, against rent of 1,500 a month and 3% growth. Over three years renting usually wins; over ten, buying does. The crossing point is what the calculator reports as the break-even.
The honest caveat
Price growth is a guess and the result is sensitive to it. Set it to zero and see whether the answer survives — if buying only wins on optimistic growth, it is a bet rather than a saving.
Turn a calculation into an enquiry
Buyers who run these numbers are ready to talk. Give every listing its own page with your photo, phone and WhatsApp on it — leads land straight on your phone.
Create your free property pageFrequently asked questions
Why is buying so bad over short periods?
Because the cost of buying and selling is paid once regardless of how long you stay. Spread over two years it is punishing; over fifteen it is small.
Should I include the return I would earn by investing the deposit?
For a strict comparison, yes — renters can invest the deposit. This model leaves it out, which flatters buying slightly.
What growth rate should I assume?
Long-run housing growth in most markets is close to inflation. Anything above that is a forecast, and worth testing at zero.
More buying calculators
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From income and deposit to a realistic asking price.
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The deposit you need, and how long it takes to save it.
BuyingClosing costs
Total cash to complete, not just the deposit.
BuyingPrice per square foot
The only fair way to compare two properties.
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A fair split when the deposits are not equal.
BuyingBuying abroad — true cost
The real cost once the exchange rate margin is counted.
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What two incomes borrow, after existing commitments.
BuyingBigger deposit, better rate
What crossing an LTV threshold is really worth.
BuyingBuy now or wait
Whether saving longer actually leaves you better off.
BuyingWhat to offer
An opening number and a walk-away number, decided in advance.