Renting vs Buying in 2025? Calculate Which Builds More Wealth

💬 “Paying €1,950 in rent every month feels like burning money. But buying? I have no idea if I’d actually be better off in the long run.”— Sanne (32), from The Hague.

In the Netherlands, the housing discussion often centers around monthly costs, mortgage interest, or house prices. But the real question is:

“What builds more long-term wealth — renting or buying?”

That’s what it’s really about, especially if you'd like to retire early. Whether you rent or buy, you’re spending money every month. The difference lies in what you get in return.

👉 That’s why we created the Buy vs Rent Calculator.

A smart tool that shows:

Where will you build more wealth? Including taxes, value appreciation, investment returns, and maintenance costs.

💰 Buying = forced wealth building.

Renting? Only if you invest yourself.

When you buy a home, you're typically paying off your mortgage each month — that’s essentially forced saving. After 30 years, you’re likely mortgage-free and benefit from property value growth.

With renting, you’re just paying to use the home. No repayment, no equity. Unless you consistently invest the difference between rent and buying costs in, say, ETFs, individual stocks, P2P platforms, or rental property.

And here’s where it gets tricky:

📉 According to CBS figures, in 2022 homeowners in the Netherlands had an average of €48,100 in free assets (excluding their home). Renters? Just €3,700.

Source: CBS – Household Wealth (2024)

That difference isn’t just about income. It’s about behavior.

👉 Homeowners have to repay and save for maintenance.

👉 Renters have to do it themselves — and often don’t.

📊 A real-life scenario using the Renting vs Buying calculator

👩 Sanne (32, Bezuidenhout, The Hague)

• Rent: €1950

• House price: €+- 600k including purchasing costs (property)

• Starting capital: €35k (invested or own money put in property)

• Invests: 100% discipline -> If she will not buy the house, then she will invest the difference fully.

• Expenses: 200 euro HOA costs + 0.5% maintenance based on the value of the property.

• Inflation / Home value growth: Both 2%, which is low compared to the current inflation (but the goal of the EU at the moment).

“If I truly invested consistently as a renter, I’d have nearly the same wealth in 30 years as if I bought. But… I know I won’t keep that up."

🧮 Calculator Result:

• In both cases Sanne will have a little bit more than €1 million in net worth.

💡 The big differences between renting and owning a home is because of 1 thing. The most important is inflation/home value growth. If the inflation and growth is 3%, then the difference grows to more than 600k in favor of the owner. That is because the rent is €1.000 after 30 years. The house is worth 400k more.

In both cases we presume that Sanne is also a very disciplined person. She is consistently investing the difference. That part is also very unlikely. With a mortgage you are forced to repay, but investing is a choice, that is why we don't advise to ever put the discipline percentage at 100% but it would be a unfair comparison and you will set yourself up for failure.

Equity - Rent vs Buy

👀 What do people typically find?

✅ Buying usually wins long-term — because it happens automatically

✅ Renting can win — if you have the discipline to invest consistently and you find a good rent vs home value

🧭 You're unsure — and that’s smart. But calculate it. Whether you rent or buy: you’ll only build wealth if you’re actively working on it.

With our calculator, you don’t have to guess.

🎯 In just 3 minutes, you'll see:

✅ Whether buying or renting is better for your situation

✅ How much wealth you build in each case

✅ Your net costs — including tax, maintenance, and interest

👉 [Calculate your wealth here]

📌 Quick Decision Guide

✅ Buying is usually smarter if:

• You expect to stay 5+ years in one place (there is always a lot of costs associated with buying and selling)

• You want to build wealth automatically

• You don’t want to manage your own investments

✅ Renting may be smarter if:

• You truly commit to investing (at least 7% return, but most likely 10% is needed to beat real-estate)

• You need flexibility or don’t have savings

• Your situation is temporary or uncertain

• You are just starting out, you are young, the house prices are crazy. It is okay to wait till you are ready!

  
  

💡 “Wealth building is done over time, whether it is with investments or with your own house, or both. It is a journey that requires patiences and everybody starts that path when they are ready for it”— CheesyGoulash [Check out our path]

Make an informed choice — not a blind gamble.👉 [Check out the calculator]