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.

From Wohnung 3+1 zum Kauf, 108 m²: its asking price, floor area and Bytky's rent estimate. Open the listing

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

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

Worked out for 108 m²: repair fund, administration, insurance and property tax.

Over the years

Buy: after 10 years9,5 Mio. Kč

Rent: after 10 years7,7 Mio. Kč

The result

Buying comes out ahead from year 3. After 10 years you'd have 1.729.458 Kč more than if you rented.

A month in the first year

Buying
68.819 Kča month
Renting
41.196 Kča month
Buying
Mortgage: 61.633 Kč · Owner's costs: 3.040 Kč · Upkeep: 6.021 Kč · Tax relief: −1.875 Kč
Cash on day one
2.907.000 Kč
Mortgage: 11.560.000 Kč

What you'd have after 10 years

If you buy
9.455.709 Kč
If you rent
7.726.251 Kč
Break-even
Year 3
Find homes on the map

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
114.883.500 Kč11.387.600 Kč825.828 Kč494.352 Kč3.049.395 Kč3.361.200 Kč
215.330.005 Kč11.206.487 Kč829.080 Kč509.184 Kč3.663.618 Kč3.821.776 Kč
315.789.905 Kč11.016.223 Kč832.452 Kč524.460 Kč4.299.985 Kč4.288.656 Kč
416.263.602 Kč10.816.342 Kč835.896 Kč540.192 Kč4.959.352 Kč4.761.698 Kč
516.751.510 Kč10.606.361 Kč839.472 Kč556.392 Kč5.642.604 Kč5.240.809 Kč
617.254.056 Kč10.385.769 Kč843.144 Kč573.084 Kč6.350.665 Kč5.725.827 Kč
717.771.677 Kč10.154.031 Kč846.912 Kč590.280 Kč7.084.496 Kč6.216.573 Kč
818.304.828 Kč9.910.581 Kč850.812 Kč607.992 Kč7.845.492 Kč6.713.276 Kč
918.853.973 Kč9.654.829 Kč854.820 Kč626.232 Kč8.635.507 Kč7.216.541 Kč
1019.419.592 Kč9.386.152 Kč858.960 Kč645.012 Kč9.455.709 Kč7.726.251 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