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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 Havířov, at the area's median asking price and rent per m² today. See Havířov'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

550.000 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 years2 Mio. Kč

Rent: after 10 years1,1 Mio. Kč

The result

Buying comes out ahead from year 2. After 10 years you'd have 805.406 Kč more than if you rented.

A month in the first year

Buying
13.157 Kča month
Renting
11.100 Kča month
Buying
Mortgage: 11.730 Kč · Owner's costs: 1.630 Kč · Upkeep: 1.146 Kč · Tax relief: −1.349 Kč
Cash on day one
567.000 Kč
Mortgage: 2.200.000 Kč

What you'd have after 10 years

If you buy
1.951.495 Kč
If you rent
1.146.089 Kč
Break-even
Year 2
Homes for sale in HavířovHomes to rent in Havířov

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
12.832.500 Kč2.167.185 Kč157.880 Kč133.200 Kč593.126 Kč627.890 Kč
22.917.475 Kč2.132.711 Kč159.125 Kč137.196 Kč723.324 Kč688.411 Kč
33.004.999 Kč2.096.495 Kč160.418 Kč141.312 Kč858.265 Kč748.470 Kč
43.095.149 Kč2.058.448 Kč161.749 Kč145.548 Kč998.127 Kč807.958 Kč
53.188.004 Kč2.018.478 Kč163.129 Kč149.916 Kč1.143.095 Kč866.763 Kč
63.283.644 Kč1.976.488 Kč164.548 Kč154.416 Kč1.293.362 Kč924.757 Kč
73.382.153 Kč1.932.377 Kč166.031 Kč159.048 Kč1.449.121 Kč981.828 Kč
83.483.618 Kč1.886.037 Kč167.553 Kč163.824 Kč1.610.587 Kč1.037.828 Kč
93.588.126 Kč1.837.354 Kč169.152 Kč168.732 Kč1.777.969 Kč1.092.646 Kč
103.695.770 Kč1.786.212 Kč170.769 Kč173.796 Kč1.951.495 Kč1.146.089 Kč

Thinking of letting it instead? Work out its cash flow

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.

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