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To Buy or Rent Real Estate?

Notice! Calculations are estimates only and the results are highly dependent on the inserted values! Calculator does not take into account tax deductions, insurance costs, real estate sales costs, property taxes, utility costs, inflation etc. It is assumed that real estate can be sold with the estimated market value. Total Net Flow shows the difference between the maintained cash at the end of period and costs during the period. Time value of the money is not taken into account!

Rent assumptions


Monthly rent payment
Expected Annual Rent Increase %
Initial renting costs (broker's fee, rent deposit etc.)

Purchase assumptions


Property Purchase Price
Down payment
Loan Amount
Loan Term Year(s)
Annual interest rate %
Loan costs (contract fee, notary fee, duties etc.)
Annual real estate appreciation %

Other assumptions


Annual interest rate/
Expected average return p.a.
 %
Years (N) You plan to use this real estate Year(s)

 

Result


Renting

Buying (with loan)

Price of real estate after appreciation-
Remaining loan balance after N years-
Future value of deposit/ remaining equity
Monthly payment in the first year
Total payments during N Years

Total Net Flow
Advantage of purchase 
Rent ratio 

Rent ratio - real estate purchase price divided to annual rental payments. If the ratio is significantly higher than 20, then it is better to rent; if significantly lower than 20, than it is more reasonable to purchase/buy.

Notice! Savings and investments are always related with risk (uncertainty) that returns vary. The result of the calculator can not in any event be interpreted as investment recommendation or advice. The actual return of the investment is affected by costs, charges and taxation, which are not taken into account in the calculation. On the basis of the calculation, one can not reliably predict the future value or return of the investment.