Buying a property is one of the biggest financial decisions you’ll ever make. Is it the right decision for you right now – or would you better off renting?

Benefits of owning

  • Once you have paid off your mortgage, your home will be yours and you won’t have to worry about paying for somewhere to live.
  • You will not need to move every time landlord changes mind and decides to sell property.
  • If your home increases in value you could use the equity to help buy a bigger home or fund a comfortable retirement.
  • You can spend money improving your home and increasing its value without having to ask a landlord.
  • Sometimes it can be cheaper to buy than rent.

Potential downsides of owning

  • It’s a big commitment – you need to be sure you can afford what you’re taking on.
  • If the value of your home falls, you may be unable to sell if you owe more to your mortgage lender than your home is worth.
  • When interest rates rise, your repayments will go up. It’s important you’re prepared for a rise.
  • You need to be sure you can afford maintenance costs like fixing a broken boiler or leaky roof.
  • If you stretch your budget when you buy you may not have money for meals out, holidays and entertainment.
  • You have less flexibility than when renting. For example, selling up and moving is more expensive as you have estate agency and legal fees to pay.
  • It may not always be easy to sell your home, depending on what’s happening in the market.
  • If you’re living with someone and split up, deciding what to do with the property can be complicated and expensive.

What about financials?

Let’s calculate for house: Rent or Buy Property in Cyprus


  1. Loan amount: You can obtain a loan for an amount of up to 80% of the value of the property.
  2. Minimum repayment period: 15 years if you opt for a fixed interest rate.
  3. Asking price: 300,000. Down payment: 60,000.
  4. Rent price: 900 per month.
5 years 10 years 15 years
Buy Rent Buy Rent Buy Rent
Payments -121,516 -54,000 -243,031 -108,000 -364,547 -162,000
Transfer Fees -4,000 0 -4,000 0 -4,000 0
Interests 0 5,400 0 10,800 0 16,200
Property Tax -8,500 0 -17,000 0 -25,500 0
Assets 300,000 60,000 300,000 60,000 300,000 60,000
165,984 11,400 35,969 -37,200 -94,047 -85,800

Thus, in 15 years renting is more preferable than buying option, however after 20 years buying option will have increasing positive effect especially if the house price and rent price will rise.