Mortgage or rent? How to decide without emotions

Buying a flat vs. renting — it is not about attachment to "your own roof." It is a financial decision that depends on your situation: income, mobility, lifestyle, and current property prices and interest rates.

When renting is the better choice

• You plan to move within 3–5 years (work, relationship, studies).
• You don't have enough of your own funds for a deposit — a mortgage without a deposit means higher rates and higher risk.
• Property prices in the area are significantly overvalued relative to rents (price-to-rent ratio > 25).
• Rent is significantly cheaper than the monthly mortgage payment and you can invest the difference.

When a mortgage makes sense

• You have a stable income and plan to stay in the area 10+ years.
• You have a deposit of at least 10–20% of the property price (lowers interest costs).
• The monthly payment won't exceed 30–35% of household net income.
• Rent in the area is comparable to or higher than the payment — buying builds your own asset.

What people forget about a mortgage

• Maintenance and repairs: budget 1–2% of the property value per year for repairs and renovations.
• Interest: on a 30-year mortgage you often pay as much in interest as the property itself.
• Liquidity: a property can't be sold over a weekend — tied-up capital isn't flexible.
• Rate fixation: after the fixation ends, rates may rise.

Try the decision in the simulator

Ferrata has a "Mortgage or rent" scenario where you can go through the whole decision — with numbers from your situation. No registration, free.