This Colombia rent vs buy calculator compares the full financial picture of renting versus buying a home in Colombia over a horizon you choose. It uses local conventions: the mortgage rate is entered as a tasa efectiva anual (EA) and converted to a true monthly rate, and the upfront registration and notary costs are charged to the buying path.
How it works
The tool simulates both paths month by month.
Buying: pay the deposit and registration costs upfront, then each month pay mortgage interest and principal plus holding costs; the home appreciates and you build equity. Net cost = total cash out − equity recovered at the end. Renting: keep the deposit and registration cash invested at your chosen return, and pay rent that rises with inflation. Net cost = total rent − investment gain.
Whichever path has the lower net cost over the horizon wins.
Example
Over 10 years, a frequently moving renter who invests the deposit at a high real return may come out ahead of an owner facing steep EA mortgage rates and weak appreciation. Lengthen the horizon or raise appreciation and buying usually overtakes renting once the upfront costs are absorbed.
Notes
This is a simplified model. It ignores income tax effects, selling costs, the 4×1000 transaction tax, and currency/inflation nuances of UVR loans. Treat it as a directional guide, not financial advice — confirm with a Colombian asesor financiero.