How the calculator works
The calculator follows two people from the same starting point:
- The buyer pays the deposit and costs to buy, then the mortgage, Local Property Tax, insurance and repairs. When they sell, they keep the home’s value minus the mortgage left and the costs of selling.
- The renter invests the deposit and costs to buy instead, and pays rent.
Each month, whoever pays less invests the difference, so both spend the same. The result is who has more after the years you choose.
Example
A €400,000 home with a €40,000 deposit, at 3.5% over 30 years, against rent of €2,000 a month:
| Amount | |
|---|---|
| Owning, first month | €2,025 |
| Mortgage repayment | €1,617 |
| After 7 years | Buying ahead by about €122,000 |
| Buying pays off after | 1 year |
The costs of owning you don’t get back come to about €1,454 a month in the first year, well below the €2,000 rent.
What matters most
- Getting the mortgage: Central Bank rules limit most first-time buyers to 4 times income, with a 10% deposit.
- How long you stay: the costs of buying and selling take time to earn back.
- Rent increases: rises for existing tenants are capped at inflation or 2% a year, whichever is lower, which helps renting.
See what you could borrow with the how much can I borrow calculator, or read is renting dead money?