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

598.000 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 years2,1 Mio. Kč

Rent: after 10 years1,3 Mio. Kč

The result

Buying comes out ahead from year 2. After 10 years you'd have 773.558 Kč more than if you rented.

A month in the first year

Buying
14.162 Kča month
Renting
11.300 Kča month
Buying
Mortgage: 12.753 Kč · Owner's costs: 1.630 Kč · Upkeep: 1.246 Kč · Tax relief: −1.467 Kč
Cash on day one
615.000 Kč
Mortgage: 2.392.000 Kč

What you'd have after 10 years

If you buy
2.113.172 Kč
If you rent
1.339.614 Kč
Break-even
Year 2
Homes for sale in Ústí nad LabemHomes to rent in Ústí nad Labem

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
13.079.700 Kč2.356.329 Kč169.943 Kč135.600 Kč644.256 Kč688.165 Kč
23.172.091 Kč2.318.854 Kč171.246 Kč139.668 Kč785.139 Kč761.418 Kč
33.267.254 Kč2.279.485 Kč172.598 Kč143.856 Kč931.133 Kč834.684 Kč
43.365.271 Kč2.238.128 Kč173.988 Kč148.176 Kč1.082.427 Kč907.863 Kč
53.466.229 Kč2.194.679 Kč175.430 Kč152.616 Kč1.239.222 Kč980.873 Kč
63.570.216 Kč2.149.037 Kč176.923 Kč157.200 Kč1.401.721 Kč1.053.606 Kč
73.677.323 Kč2.101.087 Kč178.481 Kč161.916 Kč1.570.139 Kč1.125.973 Kč
83.787.643 Kč2.050.714 Kč180.069 Kč166.776 Kč1.744.700 Kč1.197.835 Kč
93.901.272 Kč1.997.797 Kč181.734 Kč171.780 Kč1.925.630 Kč1.269.094 Kč
104.018.310 Kč1.942.204 Kč183.444 Kč176.928 Kč2.113.172 Kč1.339.614 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.

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