Housing

When buying actually beats renting

Rent isn't dead money and a mortgage isn't a savings account. Both sides spend the same amount each month here. The difference is that one buys equity and the other buys index funds. This finds the year the buyer pulls ahead, if they ever do.

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The purchase

Property price ($)

$

Your deposit amount

$

Mortgage rate (%)

Mortgage term (years)

Buying costs (% of price)Stamp duty, legal fees, survey, lender fees.

Selling costs (total amount)Agent, legal, exit fees.

$

Owning it

Property tax per year (% of value)

Maintenance per year (% of value)Boilers die, roofs leak. 1% is the standard planning figure.

Buildings insurance per year ($)

$

Management or HOA fees ($ per month)

$

House price growth per year (%)

Renting instead

Rent for an equivalent home ($ per month)

$

Rent increases per year (%)

Expected return on savings If you rented and invested the difference, how much might it grow each year?

Years you'll stay

Quick questions

What buying costs should I include?

Stamp duty, legal fees, survey, broker's fee if applicable. In Ireland for a first-time buyer this typically runs to 1-2% of the purchase price on top of the deposit.

What investment return should the renter assume?

A conservative but realistic figure for a diversified equity portfolio is 5-7% before inflation. Use 4-5% if you want to model it after inflation.

What selling costs should I use?

Estate agent fees plus any legal costs, typically 1-2% of the sale price in Ireland. Include this because it's a real cost that reduces the buyer's net position when they eventually move.

Read the full guide to the rent vs buy decision→