Rent or buy
Compare two paths over your chosen period: buy a home with a mortgage, or rent a similar one and invest the difference. The winner is whoever ends up with more capital.
Capital by year
Table
How renting and buying are compared
Both options have the same budget. The buyer pays the down payment, the mortgage and upkeep. The renter invests the money that would have gone into the down payment and each month invests the difference between the mortgage payment and the rent. If rent is higher, the buyer invests the difference.
Renting = investments (down payment + monthly difference) with returns
- Buying wins with a low rate, fast price growth and a long horizon.
- Renting wins with an expensive mortgage, high investment returns and a short horizon.
- If you have relocated: a purchased home is capital in one country and one currency, and selling it quickly can be hard.
The Wealth Plan financial checkup shows how much of your wealth is already in property and in one country, and what that means for your plan.
Other calculators
A home is part of the bigger plan
The financial checkup shows how buying would affect your emergency fund, your pension and the risks to your wealth, and what works best in your situation. Free, 10 minutes.
FAQ
Which is better: renting or taking a mortgage?
It depends on the mortgage rate, the price relative to rent, price growth and where you invest the difference. If annual rent is below 4–5% of the price and the mortgage is expensive, renting and investing often wins. The calculator works it out for your numbers.
How are upkeep costs included?
As a percentage of the home’s current price per year: property tax, repairs, building maintenance, insurance. Usually 0.5–1.5%. A renter does not pay these.
Why does the renter invest the difference?
To keep the comparison fair: both have the same money. If the renter spends the difference, buying almost always wins — a home works as forced savings.
Should I buy a home after relocating?
Don’t rush. Live in the new country first and get to know the areas and your plans. Buying concentrates capital in one country and currency and reduces flexibility. Renting plus investing keeps your options open.