Zum Inhalt springen

Free tool

Should you rent or buy?

Put the same home side by side: bought with a mortgage, or rented while the money you'd have put down is invested. See which leaves you better off, and from which year.

A typical 55 m² two-room flat in Břeclav, at the area's median asking price and rent per m² today. See Břeclav's market

Start from an area

Pick a town, district or neighbourhood and a layout. The price and the rent become the area's medians today.

The home

Without the charges for services (heating, water, the lift).

If you buy

914.000 Kč of your own money. Under 36, banks may lend up to 90 %.

Worked out for 55 m²: repair fund, administration, insurance and property tax.

Over the years

Buy: after 10 years3,2 Mio. Kč

Rent: after 10 years1,9 Mio. Kč

The result

Buying comes out ahead from year 2. After 10 years you'd have 1.347.749 Kč more than if you rented.

A month in the first year

Buying
21.151 Kča month
Renting
17.500 Kča month
Buying
Mortgage: 19.492 Kč · Owner's costs: 1.630 Kč · Upkeep: 1.904 Kč · Tax relief: −1.875 Kč
Cash on day one
931.000 Kč
Mortgage: 3.656.000 Kč

What you'd have after 10 years

If you buy
3.215.269 Kč
If you rent
1.867.520 Kč
Break-even
Year 2
Homes for sale in BřeclavHomes to rent in Břeclav

What you'd have at each year's end

Year by year

Year by year
YearHome valueStill owedPaid to ownPaid in rentBuying: you'd haveRenting: you'd have
14.707.100 Kč3.601.478 Kč253.812 Kč210.000 Kč981.383 Kč1.030.233 Kč
24.848.313 Kč3.544.201 Kč255.084 Kč216.300 Kč1.193.709 Kč1.128.735 Kč
34.993.762 Kč3.484.032 Kč256.392 Kč222.792 Kč1.414.190 Kč1.226.331 Kč
45.143.575 Kč3.420.822 Kč257.748 Kč229.476 Kč1.643.159 Kč1.322.849 Kč
55.297.883 Kč3.354.417 Kč259.128 Kč236.352 Kč1.880.958 Kč1.418.090 Kč
65.456.819 Kč3.284.656 Kč260.556 Kč243.444 Kč2.127.942 Kč1.511.846 Kč
75.620.524 Kč3.211.370 Kč262.044 Kč250.752 Kč2.384.486 Kč1.603.911 Kč
85.789.139 Kč3.134.379 Kč263.556 Kč258.276 Kč2.650.977 Kč1.694.038 Kč
95.962.813 Kč3.053.498 Kč265.128 Kč266.016 Kč2.927.816 Kč1.782.004 Kč
106.141.698 Kč2.968.530 Kč266.896 Kč274.008 Kč3.215.269 Kč1.867.520 Kč

Thinking of letting it instead? Work out its cash flow

Reader poll

Do you own the home you live in?

Anonymous, one answer per browser. We use the answers to learn who reads Bytky.

How the comparison works

The same home, bought or rented, month by month for the years you stay. Money is never left idle: whoever pays less in a month invests the difference, and both earn the same return.

What it counts

  • Buying: the down payment and the purchase costs on the first day, then each month the mortgage, the owner's costs and upkeep. The home's value grows each year.
  • Renting: the rent, rising once a year. The charges for services are left out, because owners pay them too.
  • The renter invests what the buyer put down on day one. After that, each month, whichever side pays less invests the difference.
  • At each year's end the buyer sells: the home's value, less the mortgage still owed and the selling costs, plus their investments. The renter has their investments.
  • Mortgage interest on your own home lowers your income tax base, up to a yearly cap; the saving comes back once a year with the tax return.

What it leaves out

  • Inflation: everything is in today's crowns as they'll be paid, not adjusted to today's value.
  • Rate changes: the rate stays the same for the whole term, though real mortgages are re-fixed every few years.
  • Moving and furnishing, which both sides pay.
  • Tax on investment gains: shares and funds held for over three years are free of income tax in Czechia.
  • Risk: a home's value and investments can fall as well as rise, and neither is certain.

Every starting figure and its source

Verified figures come from the law or the ČNB, checked on the date shown. Assumptions are typical values: change them to yours.

Questions

Questions about renting or buying

Is it better to rent or buy in Czechia?

It depends on three things: how many years of rent the home costs, how long you'll stay, and what your money would earn elsewhere. Where homes cost many years of rent, renting and investing the difference can leave you ahead for a long time; where rents are high against prices, buying catches up sooner. Put in your own figures, or start from an area to use its live medians.

How long do I need to stay for buying to pay off?

The calculator shows the break-even year: the first year's end from which selling would leave you better off than having rented. Buying costs about 17.000 Kč in fees up front and selling about 3 % of the price at the end, so short stays favour renting.

What does an owner pay that a tenant doesn't?

The building's repair fund, its administration, insurance of the home, the yearly property tax and repairs inside the home. Tenants and owners both pay the charges for services such as heating and water, so the calculator leaves those out.

Can I deduct mortgage interest from my taxes?

Yes, for your own home. The interest lowers your income tax base by up to 150.000 Kč a year for loans from 2021, or 300.000 Kč for older ones, which saves 15 % of the interest you deduct. The calculator assumes you pay at least that much income tax in Czechia; switch the relief off if you don't.

How much do I need to put down?

At least 20 % of the price. The ČNB caps a mortgage at 80 % of the home's value, or 90 % for applicants under 36. On top come the purchase costs: the cadastre fee and a lawyer for the contract and escrow.

Is this financial advice?

No. It's a model with the assumptions shown on this page. A mortgage adviser can tell you what a bank would actually lend you and at what rate.

Erfahre, was eine Wohnung wert ist, bevor du anrufst.

Kostenlos für alle auf Wohnungssuche. Ohne Installation und ohne Konto loslegen.

Zur KartensucheBytky zu Chrome hinzufügen