Property · Calculator companion · By K Imports
Rent versus buy wealth scenario: practical guide
This guide explains how to use the Count.ie rent versus buy wealth scenario. Compare home equity with a renter investing the deposit and cashflow difference. Follow the inputs, method and worked example below, then compare your own scenario.
Guide written .
Open the Rent versus buy wealth scenario calculatorWhat to prepare
- Collect the purchase, loan, rental or project figures from dated documents.
- Distinguish purchase price, borrowing, one-off acquisition costs and recurring ownership costs.
- Check the property's use, tax year and any scheme eligibility against official guidance.
Understand the inputs
The calculation method
Amortise the mortgage, grow property and rent assumptions, invest annual cost differences and deduct selling costs.
Worked example
Illustrative inputs and their result.
Example inputs
- Home purchase price (€)
- 350000
- Deposit (€)
- 35000
- Mortgage annual rate (%)
- 4
- Mortgage term (years)
- 30
- Stamp duty and other purchase costs (€)
- 7500
- Comparable monthly rent (€)
- 1800
- Annual rent growth (%)
- 2
- Annual non-mortgage owner costs (€)
- 3000
- Annual owner-cost growth (%)
- 2
- Annual home-value growth (%)
- 2
- Renter annual net investment return (%)
- 4
- Selling costs as % of final value
- 2
- Years to compare
- 10
Calculated example result
- Buying Wealth Advantage
- €133,331.82
- Buyer Ending Equity
- €169,945.61
How to interpret the result
A loan payment, gross yield or purchase budget describes only part of ownership. Read exclusions carefully: affordability, lender approval, vacancy, repairs and transaction eligibility may not be fully modelled.
Compare like-for-like properties or financing scenarios, with the same term and cost basis. Where relevant, test a higher interest rate, a vacancy period or a larger maintenance allowance.
Common mistakes to avoid
- Do not compare gross rental yield with net cash flow as if they were the same measure.
- Do not assume a favourable tax result means the property or letting qualifies for a scheme.
- Keep refundable deposits and recurring costs separate from permanent acquisition costs.
Assumptions and sources
All growth assumptions are uncertain. No tax or scheme eligibility; enter actual purchase and recurring property costs.
If your case falls outside this scope, use a more suitable calculator or contact us about an unclear method.