How does the rent vs buy comparison work?

Buying costs equal the upfront transfer tax and fees plus total mortgage interest and annual holding costs, minus any gain in the property's value over the period. Renting costs equal total rent paid plus the investment return you forgo by not putting your deposit in the market. The tool compares the two net figures.

What appreciation rate should I use for Egypt?

Egyptian residential property has historically appreciated strongly in EGP terms, partly reflecting high inflation and currency moves. A nominal figure of 8 to 15% a year has been common in major cities, but past performance is not a guarantee. Use a rate you are comfortable defending.

Why include the opportunity cost of my deposit?

If you buy, your deposit is locked in the property. If you rent, that same money could earn a return — for example in a bank deposit or treasury bills, which in Egypt have offered high yields. The tool subtracts that forgone return from the cost of renting to keep the comparison fair.

Does this account for Egypt's transfer tax?

Yes. It adds the 2.5% real estate disposal tax on the purchase value plus a registration fee to the upfront cost of buying, so the comparison reflects the real cost of acquiring a home in Egypt.

Is buying always better in a high-inflation economy?

Not necessarily. High nominal appreciation can favour owning, but high mortgage rates, large transaction taxes and high deposit returns can tip the balance toward renting, especially over short horizons. The tool lets you test your own assumptions rather than assuming an answer.

Egypt Rent vs Buy Calculator

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An Egypt rent vs buy calculator that models the full financial picture over your chosen horizon — typically 10 years. It weighs the upfront transfer tax and fees, total mortgage interest, annual holding costs and property appreciation against the cost of renting plus the opportunity cost of your deposit.

How it works

The tool builds two totals and compares them.

Cost of buying over the period:

Buy = transfer tax + fees + total mortgage interest + holding costs
      - increase in property value

Cost of renting over the same period:

Rent = total rent paid - investment return on the deposit

Rent grows each year at the increase rate you set. The property value compounds at your appreciation rate, and the deposit’s forgone return compounds at the investment rate. The option with the lower net cost wins.

Example and notes

Compare buying a 2,000,000 EGP flat (deposit 400,000 EGP, mortgage 18%, appreciation 10%) with renting an equivalent home for 12,000 EGP a month rising 10% a year, with a deposit alternative earning 18%, over 10 years. Strong appreciation can make buying cheaper, but high mortgage rates and a high deposit return narrow the gap. The tool shows which side comes out ahead under your numbers.

This is a simplified model. It ignores maintenance variability, tax on investment returns, voids and the value of flexibility. All figures are calculated locally in your browser — change the assumptions to stress-test the decision.