Buy or rent in Berlin?

Should you buy an apartment in Berlin or should you keep renting and invest the difference? Find out what will grow your net worth faster.

Select past years if you want to see what would have happened if you bought or rented in the past.

Berlin path

77 m²

Building

Tempelhof-Schöneberg · 77 m² Altbau · MSCI World. €5,491/m² · cold rent €16.35/m². Every slider follows this path.

Renting is ahead

€158,313

(35%)

After 20 years your net worth will be €158,313 higher. That is 35% more than if you had bought a home.

The cost of indecision

Monte Carlo

Final stash

Buyer

€450,134

Renter

€608,447

Net worth over time
  • Buyer
  • Renter
−49k128k304k481k657k03581013151820

Snapshot after 20 years

Forward path: 7% MSCI World and 2.5% home/rent every year.

Buyer

Home value
€466,460
Remaining debt
€0

Loan paid off

Selling costs
€16,326
Home equity
€466,460

Value − remaining debt

Sale proceeds
€450,134

Value − selling costs − remaining debt

Buyer net worth
€450,134

Sale proceeds + ETF after tax

Renter

Renter ETF start
€94,414

Same down payment as the buyer

Gap invested (total)
€289,908

Cumulative extra ETF contributions because buying cost more

Renter contributions (total)
€384,321
Renter ETF (pre-tax)
€687,654
Capital gains tax (renter)
€79,207

Gains after partial exemption

Renter ETF after tax
€608,447

Monthly housing costs

Year 1

Buyer (payment + costs)
€2,817.26
of which mortgage
€2,288.51
of which owner costs
€528.75
Renter (cold rent)
€1,260.00
Renter invests
€1,557.26

Year 20

Buyer (payment + costs)
€2,817.26
of which mortgage
€2,288.51
of which owner costs
€528.75
Renter (cold rent)
€2,014.30
Renter invests
€802.96