Calculator T-07 / Available
Renting is not the opposite of investing.
Compare buying a home with renting and investing the difference, using one transparent long-term view.
Assumption set
Purchase case
Upfront cash
KES 3.00m
Monthly mortgage
KES 127,847
Owner monthly outflow
KES 147,847
Loan amount
KES 9.60m
Base-case output
Decision view
Net worth advantage after 10 years
KES 467,095
Positive means buying leads. Negative means renting and investing the difference leads.
Owner net worth
KES 15.35m
Renter portfolio
KES 14.88m
Future home value
KES 21.49m
Remaining debt
KES 5.49m
Break-even signal
Buying needs roughly 5.8% annual property growth to match the rent-and-invest case under these assumptions.
Sensitivity matrix
Growth vs return.
Each cell shows the buying advantage after the holding period. Terracotta cells favour renting.
| Property / Portfolio | 6% | 8% | 10% | 12% | 14% |
|---|---|---|---|---|---|
| 0% | -KES 4.42m | -KES 6.39m | -KES 8.74m | -KES 11.55m | -KES 14.92m |
| 3% | -KES 421,542 | -KES 2.39m | -KES 4.74m | -KES 7.55m | -KES 10.92m |
| 6% | KES 4.78m | KES 2.82m | KES 467,095 | -KES 2.35m | -KES 5.72m |
| 9% | KES 11.49m | KES 9.53m | KES 7.18m | KES 4.36m | KES 991,972 |
| 12% | KES 20.09m | KES 18.12m | KES 15.77m | KES 12.96m | KES 9.59m |
Method note
The buying case estimates future property value, deducts selling costs and remaining mortgage debt, and treats the result as owner net worth.
The renting case assumes the upfront cash not used for purchase is invested, then adds any positive monthly saving from renting versus owning. The model excludes tax, irregular repairs, lifestyle utility, relocation flexibility, and non-financial preferences.
Questions / Method
How to read a rent vs buy result.
What does the rent vs buy calculator compare?
It compares estimated net worth after a chosen holding period. The buying case estimates home equity after mortgage debt and selling costs. The renting case invests the deposit, acquisition costs, and any monthly saving from renting.
Why does the calculator invest the difference?
Renting is not automatically cheaper unless the cash not used for buying is deployed productively. Investing the difference makes the comparison closer to an investment decision rather than only a monthly affordability test.
Is buying always better when property prices rise?
No. Buying can still underperform if mortgage costs, transaction costs, maintenance, and opportunity cost exceed the benefit of appreciation and principal repayment over the holding period.