Find out which one brings you the most benefit in long term! Buying or renting a home?
Popular wisdom says it's always cheaper, better investment, etc to buy a house or apartment instead of renting.
But is it really?
It actually depends on many factors but here we're trying to simplify this for you but feel free to go advanced and fine tune any parameters to best match your individual investment and saving profile.
For a few months I was searching for various sources and calculators to determine if it would be worth for me buying a house instead of paying for my rent and I realised there are very few comprehensive answers.
There is the common wisdom saying buying is always cheaper but you can find out very quickly this is far from true.
After long research and validating (or disputing) theories and calculations I've created this website to serve as a quick, easy and understandable summary of all what I've learned by answering my own question:
Is it worth to buy a house or am I better keep renting?
Mortgage payment: of course a significant chunk of this is capital (principle) repayment but a big portion will be interest which is non recoverable.
Cost of ownership: a frequently forgotten aspect of buying a house is the inherent cost of owning it. Maintenance cost and property tax are the main items to calculate with.
Rent: a huge factor obviously is the price you pay for rent and not to forget about the yearly increase.
You can make a calculation by simply filling the buy and rent price and RentiBuy uses default values based on the country average and historical statistics.
RentiBuy takes into account all the various factors and summarises the result in a easily digestable format for you the make the most informed decision.
You can fine tune every parameter in the calculation making it your own as you prefer. Change the interest, deposit or the investment yield and see how much the results differ.
Ben Felix explain this rule in this video very well.
He provides an easy to understand explanation on how different factors play a role in making buying a house a great investment or a waste of money.
If you want to check for your own number use the calculator and see what the math shows.
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