How does a rent versus buy comparison work?

Buying builds equity but front-loads costs (deposit, 2% PCC, notary fees, mortgage interest, maintenance). Renting keeps your deposit free to invest. The fair comparison projects the net wealth of each path over the same horizon — buyer's home equity minus selling costs versus renter's invested deposit plus savings.

What costs does the buy side include?

The deposit, the 2% PCC transfer tax (secondary market), notary and registry fees, monthly mortgage payments, and annual holding costs such as maintenance, building fees (czynsz) and property insurance. At the end, the home is sold at its appreciated value less an estimated selling cost.

What does the rent side assume?

The renter pays rent that grows each year, and invests the money they did not tie up in a deposit plus any monthly difference between rent and the buyer's outgoings. That invested pot grows at the return rate you set, representing the opportunity cost of buying.

What appreciation rate should I use for Poland?

Polish residential prices have risen strongly over the long run, but past growth does not guarantee future returns. Use a conservative real estimate and test a few values — the result is sensitive to the gap between appreciation and your alternative investment return.

Does this account for tax on rental investment gains?

It models gross investment growth and gross appreciation. Poland levies a 19% capital gains tax (podatek Belki) on investment profits and may tax property sales within five years. For a precise after-tax comparison, reduce the investment return and appreciation accordingly.

Poland Rent vs Buy Calculator

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The Poland Rent vs Buy Calculator answers the question every prospective Polish homeowner asks: over my time horizon, am I financially better off buying with a kredyt hipoteczny or renting and investing my deposit? It models both paths with Polish-specific costs — the 2% PCC transfer tax, notary fees, mortgage interest and holding costs — and compares the net wealth each produces.

How it works

The tool projects month by month (aggregated to years) over your horizon:

Buy path: upfront cost = deposit + 2% PCC + notary/registry fees. You then pay the mortgage and annual holding costs. At the end, the home is worth price x (1 + appreciation)^years, you repay the outstanding loan, and pay an estimated selling cost. Your net position is the sale proceeds minus remaining debt and total cash spent.
Rent path: you keep the deposit and invest it. Each year you pay rent (growing at the rent inflation rate) and invest the difference if your buyer outgoings were higher. The invested pot grows at your investment return. Your net position is that pot minus total rent paid.

The path with the higher net wealth (or lower net cost) at the horizon wins.

Buy wealth = appreciated home − remaining loan − costs. Rent wealth = invested deposit + savings − rent.

Notes

The result hinges on the spread between property appreciation and your investment return, and on how long you stay — short horizons favour renting because transaction costs (PCC, notary, selling fees) dominate. Polish capital gains are taxed at 19% (podatek Belki) and property sold within five years can be taxable, so trim the return and appreciation for an after-tax view. Everything is computed in your browser.