Rent vs. Buy
Purchase Details
20.0% down
€100,000€1,000,000
€40,000 (10%)€400,000 (100%)
%
%
Rent Scenario
€
Excluding operating costs, utilities, and other expenses
Current Monthly€1,000
After 30 Years€2,098
Total Rent Paid
€526,832
Over 30 years with 2.5% annual increases
Asset Value at End
€0
No owned asset after {years} years
Monthly Payment
€1,627
Approximate monthly loan payment
Wealth Building
€284,374
Property value minus total paid
Property Appreciation
142.7%
Total growth over 30 years (3% annually)
Cost Comparison
Buying a Home
Down Payment€80,000
Monthly Payment × 360€665,731
Total Paid
€745,731
Property Value€970,905
Renting
Initial Rent (Monthly)€1,000
Final Rent (Monthly)€2,098
Total Rent
€526,832
Asset Value€0
No owned asset after 30 years
Payment Difference
€138,899
Buy cheaper
Wealth Gain
€970,905
Buy only
Equity Built
€970,905
Property value you'll own after 30 years
Nominal Spending Difference
Cash flow comparison over 30 years
Buying results in €138,899 lower total cost (including down payment)
Total cost includes down payment and all mortgage payments. This reflects only cash outflows and does not account for wealth or equity building.
Long-Term Wealth Impact
Asset building value
Buying€970,905
Renting€0
Buying creates equity and property value (€970,905) while renting results in €0 asset value after 30 years.
Recommendation: Buying Makes Sense
Why buying is advantageous:
- • You'll build €284,374 in net worth over 30 years
- • Property appreciation (3% annually = 142.7%% total) creates significant wealth
- • You gain ownership, stability, and control over your living space
- • Potential tax benefits and inflation hedge through real estate
30-Year Payment Comparison
The chart compares fixed mortgage payment (blue) with rent payment increasing at 2.5% annually (red) over 30 years.
Calculate this scenario in detail
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Calculation based on standard annuity formula with Austrian closing cost logic.
Next Steps
Detailed financing calculation