Tap to type · drag sideways to adjust
What a similar home costs to rent.
Price = 27.8 annual rents – rather expensive (25+)
I have € of equity, live in and plan for years.
Share of the purchase price, usually 1–2%
Renters invest equity and savings
Buying pays off from year 9
Compared is wealth: property value minus remaining debt versus invested equity and invested savings.
Wealth difference after 20 years
€88,346
€88,346Buying leaves you with €88,346 more wealth after 20 years than renting and investing.
Buyahead
Rent
Wealth of both options over 40 years. Drag the point to change your horizon.
What you can do
With 1% less appreciation: Rent ahead by €39,720
With your assumptions: Buy ahead by €88,346.
With 1% more investment return: Buy ahead by €7,702
With your assumptions: Buy ahead by €88,346.
Purchase costs €32,296 (state real estate transfer tax, notary and land registry under the GNotKG, agent), financing need €352,296.
Each year: buy = property value − remaining debt; rent = invested equity plus the yearly difference in housing costs, compounded at the assumed return.
Real estate transfer tax per federal state; other values are your assumptions.