Is buying always better? See how Irish property rules and opportunity cost stack up.
Illustrative only — does not constitute financial advice. Property and investment returns are not guaranteed. Consult a financial adviser before making major decisions.
Your scenario
€350,000
10%
Central Bank rules: first-time buyers need at least 10% deposit
4.0%
30 yr
Growth assumptions
3.0%
1.0%
% of property value per year (repairs, insurance, upkeep)
Rent alternative
€1,400
2.0%
5.0%
Return if renter invests the equivalent of the buyer's upfront costs
25 yr
Upfront costs (buy)
€41,000
total to get the keys
Deposit (10%)€35,000
Stamp duty (1%)€3,500
Legal fees (est.)€2,500
Monthly payments (buy)
€1,504
mortgage repayment /month
Loan amount€315,000
vs. monthly rent€1,400
Difference+€104 /mo
With these assumptions, buying becomes financially ahead of renting at year 5. After that point, the buyer’s net position (equity minus all costs) exceeds what the renter would have accumulated by investing the equivalent deposit.
Buy net position
Rent net position
Net position = total assets minus total cash outlays from the decision. Dashed vertical line marks year 5 (breakeven).
Key milestones
Year
Buy equity
Buy net
Rent invested
Rent net
Ahead
5
€120,836
-€29,535
€52,328
-€35,100
Buy
10
€222,201
-€40,589
€66,785
-€117,171
Buy
15
€341,979
-€36,765
€85,236
-€205,293
Buy
20
€483,603
-€15,191
€108,785
-€299,411
Buy
25
€651,164
€27,571
€138,841
-€399,268
Buy
What this models
Buy net position: property equity minus all cash outlays (deposit + stamp duty + legal fees + all mortgage payments + annual maintenance).
Rent net position:what the buyer’s upfront costs would grow to if invested at the stated return rate, minus total rent paid.
Stamp duty uses Irish residential rates: 1% on the first €1m, 2% above.
Central Bank LTV rules: 10% minimum deposit for first-time buyers, 20% for subsequent buyers. LTI limit of 4× gross income is not modelled here.
Does not model: mortgage interest relief, Help to Buy, rent tax credit, property taxes (LPT), agent fees on sale, or rental income.