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ÉpargneMalinEN
Updated
Written byMottalib Radif, MBA INSEAD

Buy or Rent: Financial Comparator 2026

Compare the total cost of buying (mortgage, notary fees, property tax) and renting over the long term to determine the best financial option.

Purchase parameters

€
€
10 years25 years
€/month
€/year

Rental parameters

€/month

Assumptions

5 years25 years

Over 20 years, it is financially better to:

Buy

Advantage: 151 374 €

Net cost of buying

70 732 €

Net cost of renting

222 106 €

Break-even point

1 years

Time for buying to become profitable

YearNet cost of buyingNet cost of renting
1-166 389 €9 300 €
2-152 878 €18 771 €
3-139 469 €28 416 €
4-126 164 €38 238 €
5-112 966 €48 240 €
6-99 875 €58 425 €
7-86 895 €68 797 €
8-74 027 €79 358 €
9-61 275 €90 111 €
10-48 639 €101 061 €
11-36 123 €112 210 €
12-23 729 €123 563 €
13-11 459 €135 121 €
14683 €146 889 €
1512 697 €158 871 €
1624 579 €171 069 €
1736 326 €183 488 €
1847 935 €196 131 €
1959 405 €209 003 €
2070 732 €222 106 €

Buy or rent: key factors to consider

The decision between buying and renting your primary residence is one of the most important in personal finance. Contrary to popular belief, buying is not always the best financial option. Everything depends on the purchase price, the level of rents, mortgage rates, the expected duration of occupancy and property price trends.

The tenant has an often underestimated advantage: the ability to invest the down payment they did not use to buy. If the return on these savings exceeds the opportunity cost of renting, remaining a tenant can be financially more advantageous, especially in areas where purchase prices are very high relative to rents (price-to-rent ratio above 25).

Questions fréquentes

After how many years does buying become profitable?
Generally, buying becomes profitable after 6 to 10 years of occupancy, depending on the city's price-to-rent ratio, the mortgage rate and notary fees (approximately 8% for existing properties). The longer the holding period, the more advantageous buying becomes thanks to the amortisation of fixed costs.
How do notary fees impact the comparison?
Notary fees (approximately 8% of the price for existing properties, 2-3% for new-builds) are an irrecoverable cost that weighs heavily in the early years. This is the main reason why buying is not profitable in the short term. It generally takes 5 to 8 years of ownership to amortise these fees.
Is rent really 'wasted' money?
No, rent is not wasted money. It provides you with housing and a flexibility that buying does not offer. Moreover, mortgage interest, notary fees, property tax and co-ownership charges are also non-recoverable expenses for an owner. The comparison must be comprehensive.
Which parameters have the greatest impact on the result?
The three most influential parameters are: the purchase price-to-annual rent ratio (the higher it is, the more renting is advantageous), the mortgage interest rate, and the annual property appreciation. Low appreciation or a high mortgage rate favour renting. The length of stay matters just as much: below roughly five years, purchase costs and notary fees rarely have time to be absorbed by any appreciation.
Disclaimer: This comparator provides an indicative estimate based on simplified assumptions. Actual costs depend on many factors not taken into account (renovation work, mortgage insurance, actual price changes). Consult a professional before any purchase decision.

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