The eternal question — answered with numbers. Compare total cost, net worth impact and break-even point for renting vs buying over your time horizon.
🏠 Buying
Home price €350,000
€
Down payment €70,000 (20%)
€
Mortgage rate 3.5%
Mortgage term
Home appreciation/yr 3%
Annual maintenance ~1% of home price included
🔑 Renting
Monthly rent €1,400
€
Annual rent increase 2%
Investment return/yr 7%
Renter invests down payment + monthly savings vs mortgage diff
Shared assumptions
Buying costs 5%
Notary, agency, taxes
Time horizon
Net worth over time
Buy (equity)
Rent + invest
Buying — total cost
Renting — total cost
Methodology
Buyer net worth = home value - remaining mortgage balance. Renter net worth = invested down payment + invested monthly savings (difference between mortgage payment and rent), compounded at the investment return rate. Annual maintenance estimated at 1% of home value. Property taxes not included (vary by country). This is a simplified model for educational purposes — consult a financial advisor before making real estate decisions.