Should you buy a house or rent? The calculator to check it

Do you want to understand in a scientific and simple way if, in your specific case, it is more convenient to buy a house or to rent it?

This calculator will give you the definitive answer!

Enter the required parameters and, for an even more precise calculation, also those in the “Advanced” area.

Below you will find a small guide to using the calculator.

Calcolatore Casa: Acquisto o Affitto?
Prezzo casa
Interesse Mutuo
Anni Mutuo
Rendimento Investimenti
Spese Agenzia per affitto
Spese Acquisto Casa
Spese Ristrutturazione
Spese Annuali di lavori
Costo Vendita
Apprezzamento Casa per anno
Tassazione Investimenti
Inflazione annua
Rata del mutuo al netto degli interessi
Rata del mutuo
Costo totale
Delta: (Portafoglio Affitto + Investimento) – (Portafoglio con casa)
Conviene Affitto + Investimento
Conviene comprare Casa

What parameters does the calculator consider?

The calculator takes into consideration the following parameters which affect, for the most part, the cost of buying , maintaining and selling the house:
First home purchase
Mortgage – Restructuring
costs , understood as a percentage of the value of the house Maintenance work , value annual as a percentage of home value – Home buying and selling expenses , shown as a percentage of home purchase price InflationAppreciation

(or depreciation) of the house over the years, annual value as a percentage of the value of the house
Cost of a rent between the agency and the monthly fee
– Tax relief is not considered. However, they can be entered indirectly when choosing inputs

For ease of use, the parameters are pre-set. However, they can all be edited so that they can best reflect your situation .

first graph: ?

The first graph above allows you to analyze the costs deriving from the purchase and maintenance of a house compared to those linked to renting .

In particular, for the purchase of the house the following will be considered:
Cost of the mortgage – Renovation
costs Annual maintenance work – Annual appreciation of the house (positive or negative) – Annual inflation (positive or negative) Expenses to be incurred in the purchase and in the sales phase

For the rent, on the other hand, the following will be considered:
Agency cost
Monthly rent

The two lines therefore tell us:
What costs we would have had to bear after “x” years if we had decided to buy a house, including sales costs
What is the disbursement we would have had to bear in the case of rent

In this graph we therefore have an idea purely related to the costs to be incurred in the two cases, without considering any type of investment

A sort of “sliding doors” :

What costs would be faced by buying a house (with initial costs and monthly mortgage for a certain number of years) ? And which instead remaining in rent ?

Second chart: is it better to buy a house or to stay in rent and invest?

With the second graph, however, we want to go further because the comparison shown in the first graph is not completely complete. In the Business Case relating to “it is better to buy a house”, in fact, we should consider that the capital made available for the purchase of the house, in the case of renting, could be invested rather than kept under the mattress.

We will therefore have the case in which all the costs we had to face in buying the house in year zero will instead be invested in a financial instrument that can give us an annual return chosen by us.

On the basis of everyone’s propensity for risk, it is therefore possible to simulate (in “Advanced”) the return on an investment and compare it with a real estate investment : in this way one has an idea of ​​which of the two solutions would be more convenient on the basis of personal parameters.

Obviously, the annual rent payment will be subtracted from the curve relating to the return due to investments .

Therefore, if the initial capital and the set return are not sufficient , it will happen that the money used for the rent will erode the capital . In this case negative values ​​will be shown within the calculator.

It is better to buy a house - Calculator
Rent + Investment vs Home Purchase Calculator

For those wishing to have a practical example, you can read this article .

All clear? From the test, did you make the right choice between buying a house or renting?