Rent or buy a house?

Are you unsure whether to rent or buy a home? The best choice depends on your specific needs and financial possibilities. In this article, we explore the benefits of both renting and buying, and discover which option is most beneficial for you.

What are the benefits of buying?

The purchase of a house has several advantages:

• You build up wealth
• You have certainty about your living situation
• Your monthly costs are predictable for a longer period
• You can decorate your home according to your own taste and needs

You build up wealth

When you buy a home with a mortgage, you repay a part of your loan every month. You can see this repayment as an investment in building your own wealth. At the end of the term, the house is completely yours. You then only have to pay for things like gas, water, electricity, insurance, taxes, and maintenance. That's a fraction if you compare it with the monthly costs for mortgage or rent.

Moreover, you can benefit from increases in the value of your home, which can strengthen your position in the housing market in the long term.

You have certainty about your living situation

When buying a house, you have the certainty that you can continue living in your own house as long as you meet your mortgage obligations. This gives a sense of security and stability, which is particularly important for people who are looking for a permanent and long-term place to live. As a homeowner, you have full control over how long you want to stay in your home. You don't have to worry about unexpected moves.

As a renter, you can face that. You run the risk of having to leave your home because the landlord does not renew the lease. This can lead to uncertainty and stress about your living situation. For example, because the house is being sold or the landlord wants to live in the house himself. Read more about your rights as a tenant when selling a rented house.

Your monthly costs are predictable for a longer period

As a homeowner, you pay monthly for your mortgage. If you fix the mortgage interest for a longer period, your monthly costs remain predictable. After the expiration of this 'fixed interest period', your interest rate is reset. Depending on market conditions, your monthly costs will then rise or fall.

Despite this uncertain factor, when buying a home you have certainty about your monthly costs for a longer period. Rental prices can be increased every year, while with a mortgage, you continue to pay the same mortgage interest during the fixed interest period.

You can decorate your home according to your own taste and needs

For example, you can install a new kitchen, remodel the bathroom or create an extension. You can also completely align the interior with your own taste. Think of choosing a beautiful floor, painting the walls and selecting furniture. Not only does this increase your living comfort; if you do it well, it can also increase the value of your home. Read more about fixing up your house for sale.

The nice thing is that you can also make adjustments to the house, so you can continue to live there at a later age. Think of installing a stairlift, making the house level, or moving the bathroom.

When renting a home, you have less freedom to make major changes. You need permission from the landlord for major changes, such as a new kitchen or the remodeling of the bathroom. If you do get permission, it's wise to think twice whether the adjustments are worth it to you. You bear the costs, while the landlord benefits from any increase in the value of the house.

Even for smaller changes, such as painting walls or hanging shelves, you often have to ask for permission. Moreover, you usually have to return the house to its original state when you leave. You may wonder if it is all worth it.

What are the advantages of renting?

Renting also has several advantages:

• You can move relatively easily
• You can move relatively quickly
• You run no risk of residual debt
• You don't have to do any maintenance on the property

You can move relatively easily

Renting gives you a lot of flexibility; you can move relatively easily without being stuck with selling a house. Instead, you can simply cancel your rental contract. The notice period usually varies from 1 to 3 months, depending on your lease and the landlord's rules. For instance, when you want to live smaller.

The nice thing about renting is that you can quickly respond to changes in your life. Think of a new job in another city, making a world trip, or moving in together. You don't have to worry about double living costs, choosing the right time to sell or finding a buyer for your property.

You can move relatively quickly

Rental properties are often available more quickly than properties for sale, as you don't have to go through the lengthy buying process. In addition, rental contracts usually require less paperwork and there are no worries about mortgage applications or notarial deeds. This allows you to move into a rental property within a short period, sometimes even within a few days or weeks. This is especially useful if you need to change location quickly, for example for a new job or personal reasons.

You run no risk of residual debt

The advantage of renting can also be that you run no risk of residual debt. When you buy a house, you never know what the market will be like when you want to sell your property again. If house prices have fallen when you want to sell your house, the selling price may be lower than the outstanding mortgage. You are then left with a residual debt.

Of course, on the other hand, you can also sell your property with surplus value. This gives you a favorable position in the housing market. But you must be willing to take on this uncertain factor of the market.

As a tenant, you don't have to deal with this. You don't have a mortgage and therefore no risk of residual debt. This provides financial security, especially in uncertain economic times or changes in the housing market. You don't have to worry about market fluctuations and potential financial consequences. This makes renting a safe choice for people who value flexibility and security.

You don't have to do any maintenance on the property

The nice thing about renting is that you don't have to worry about the maintenance of the property. Major maintenance tasks, such as repairing a broken central heating boiler, painting the outside of the house, or replacing roof tiles, are the landlord's responsibility. As a tenant, you don't have to pay or arrange these things.

Other costs related to the house, such as paying tax for the house and compulsory insurances, are also borne by the landlord.

When do you choose to buy or rent?

The choice between buying and renting depends on various factors, including your financial situation, lifestyle, future plans, and personal preferences.

Reasons to opt for buying

Generally, people choose to buy a house if they are looking for:

• capital building
• long-term stability
• the freedom to adjust their home to their own taste and needs

Buying is especially attractive for people who intend to live in the same place for a long time and are willing to invest in their own property.

Want to find out how much money you can borrow from the bank? Arrange for a free orientation meeting with a mortgage advisor. Get the help of a purchase real estate agent to find the right property for sale and a smooth buying process. Can't buy a property yourself? Read here how parents can help their children buy a house.

Discover more about buying a property

All costs when buying a house

Buying a house with your parents (5 ways)

Buying a house: how do you do that?

Buying a first house as a starter

Buying a house at an older age

Reasons to choose renting

In general, people choose to rent a house when they are looking for:

• flexibility in their living environment
• a home they can move into quickly
• less financial risks and obligations

Renting is particularly attractive for people who need flexibility in their living conditions, for example due to the phase of life they are in. It is also the ideal option for people who quickly need a home or do not want to be tied to long-term financial obligations and risks.

From owned house to rented house

There are also people who deliberately choose to sell their owned house and then rent. The advantage of this is that you can use the surplus value of your owned house to pay the rent. The remaining money can be freely spent.* Many people choose this option later in life, for example when they are retired and the children have left home.

Another advantage is that they don't have to worry about maintaining their owned house. However, it may be more difficult to make certain adjustments to a rented house, because you need the landlord's permission. Think about installing a stair lift or adjusting the kitchen or bathroom.

Some older people deliberately choose to sell their owned house and rent, because they don't want to "burden" their heirs with the sale of a house after their death. This usually involves a lot, as you can read in our article about selling the parental house after death. With a rented house, there is less to worry about: all you have to do is cancel the rent, empty the house and hand in the key.

*Note: if you put the surplus value on your savings account, it is considered your capital. If you exceed the 'tax-free capital' of - in 2024 - €57,000 (for 1 person) or €114,000 (for tax partners), you will pay capital tax in box 3. Therefore, be sure to get good advice from a financial adviser if you are considering swapping your owned house for a rented house.

Renting because buying is not an option

In many cases, people are forced to rent because they are unable to buy a house. For example, because they don't have enough financial resources for a mortgage. Especially starters and single persons (possibly with children) find it difficult in the housing market.

They often struggle to get a mortgage high enough for the average house prices. The competitive housing market with a limited supply of affordable houses and the high demand does not make it any easier. The strong competition also leads to overbidding, which often results in their bid on a house being undercut.

Do you recognize yourself in this story? Then read this article, in which we give tips for increasing your chances on the housing market. Hopefully, it will be of use to you.

What is cheaper: buying or renting?

The answer to whether buying or renting is cheaper cannot be answered in one sentence. The answer depends on various factors and can differ in the short and long term.

In the short term, renting is usually cheaper

In the short term, renting seems cheaper. When you rent a house, you usually only pay a deposit at the beginning of the lease. This amount is often equivalent to 1 or 2 months' rent. When you buy a house, you incur much more costs. Think of notary costs, real estate agent costs, and transfer tax.

In our article all costs when buying a house you can read which amounts you should take into account.

In the long term, buying is usually cheaper

But when we look at the long term, buying is almost always more advantageous than renting. The interest you pay to the bank is lost every month. But the monthly repayment for your mortgage can be seen as an investment in building up your capital. Upon selling your house, you can usually recoup these costs.

If you live in your owned house for a longer period of time, you usually build up surplus value. Surplus value arises when the value of your house increases compared to the mortgage on it. This can be due to the (partial) repayment of your mortgage, but also due to rising house prices or renovations.

On the other hand, you can also face a residual debt. This can happen if you sell your house for a lower price than the amount of outstanding mortgage debt.

With renting, you do not build up any own capital and you basically only pay for the use of the house. The money you pay in rent every month cannot be seen as an investment.

Comparing monthly costs

If we compare the monthly costs for buying and renting, you pay more for an owned house in maintenance, insurance, and taxes. This makes the costs of an owned house seem higher. But when you benefit from a low mortgage interest, buying a house can still be cheaper on a monthly basis.

Because there are many factors that play a role in the choice between buying and renting, it is important to look closely at your own financial situation, possibilities, and future plans before making a decision. What is cheaper for one person can be more expensive for another.

Make an appointment for a free mortgage talk with a mortgage adviser, have a conversation with a purchase real estate agent or map out your possibilities with a financial adviser.

What if you can't buy, but can't find an affordable rental home either?

If you can't buy a house and can't find an affordable rental home either, you find yourself in a tricky situation. Read our tips to increase your chances on the housing market. Perhaps you qualify for the starter scheme, an emergency declaration, or there might be another possibility. Check out the tips, there might be options that can help you find a home.

Buying a house impossible, or not?

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Mortgage: everything you need to consider when buying and selling your home

The cost of a real estate agent (2025)

The costs of mortgage advice

Comparing mortgage advisors

Selling a house at an older age

Moving to the countryside

Downsizing