Buying vs Renting in Belgium: Complete Simulation

The Great Belgian Dilemma: Buy or Rent?

Belgium is traditionally a nation of homeowners: approximately 72% of households own their home, one of the highest rates in Europe. This "ownership reflex" is deeply rooted in Belgian culture, but is it always rational in 2025? With high property prices, significant acquisition costs, and interest rates that, while declining, remain higher than in 2020-2021, the question deserves a thorough numerical analysis.

The True Costs of Buying

Let us take a standard apartment in Brussels at 280,000 euros as the basis for our simulation.

Acquisition Costs (One-Off)

• Registration fees (12.5% in Brussels): 35,000 euros (with an abatement of 200,000 euros on the first tranche for own residence, the effective amount drops to approximately 10,000 euros)
• Notary fees: approximately 4,500 euros
• Bank application fees: approximately 500 euros
• Mortgage registration costs: approximately 4,000 euros
• Total costs: approximately 19,000 euros

Use our notary fee calculator for a precise estimate based on your situation.

Monthly Costs for the Owner

• Mortgage payment (252,000 euros over 25 years at 3.2%): 1,220 euros/month
• Outstanding balance insurance: 60 euros/month
• Property tax: 125 euros/month (1,500 euros/year)
• Home insurance: 40 euros/month
• Maintenance and repairs (1% value/year): 233 euros/month
• Co-ownership charges: 180 euros/month
• Total monthly owner cost: approximately 1,858 euros

The True Costs of Renting

Monthly Costs for the Tenant

• Monthly rent for an equivalent property: 1,100 euros/month
• Tenant insurance: 15 euros/month
• Rental charges: 100 euros/month
• Total monthly tenant cost: approximately 1,215 euros

The Tenant's "Saved" Money

The tenant spends 643 euros less per month than the owner. If this difference is invested in the stock market (average return of 6% per year after inflation), it builds an alternative capital. Additionally, the tenant has not tied up the 47,000 euros of personal contribution plus fees, which can also be invested.

Simulation Over 5, 10 and 20 Years

Assumptions

• Property price increase: 2% per year
• Rent increase: 2% per year (health index)
• Financial investment return: 6% per year
• Inflation: 2% per year

After 5 Years

• Owner: property worth 309,000 euros, capital repaid 35,000 euros, but acquisition costs lost (19,000 euros) and selling costs (~10,000 euros). Net wealth: approximately 33,000 euros
• Tenant-investor: invested savings = approximately 52,000 euros
• Verdict at 5 years: the tenant wins (mainly due to high acquisition costs)

After 10 Years

• Owner: property worth 341,000 euros, capital repaid 82,000 euros. Net wealth: approximately 103,000 euros
• Tenant-investor: invested savings = approximately 108,000 euros
• Verdict at 10 years: near-tie — this is the break-even point

After 20 Years

• Owner: property worth 416,000 euros, mortgage 80% repaid. Net wealth: approximately 280,000 euros
• Tenant-investor: invested savings = approximately 245,000 euros
• Verdict at 20 years: the owner wins — leverage and capital appreciation make the difference

The Break-Even Point: When Buying Becomes Profitable

In our Brussels simulation, the break-even point is around 8 to 12 years. Before this, renting and investing the difference is more profitable. After, the advantages of ownership (leverage, capital appreciation, no rent long-term) take over.

This break-even point varies depending on:

• Acquisition costs: the higher they are, the later the break-even. In Flanders (3% registration fees), it can drop to 5-6 years.
• Interest rate: the lower the rate, the faster buying becomes advantageous.
• Price appreciation: if prices rise 3% instead of 2%, the break-even moves forward 2-3 years.
• Investment returns: if the market returns 8% instead of 6%, the break-even moves back.

Tax Advantages of Ownership

In Flanders

The "woonbonus" was abolished in 2020, but the reduced registration fee rate of 3% (instead of 12%) for own residence is a major fiscal advantage that significantly lowers the break-even point.

In Brussels

The registration fee abatement allows exemption of the first 200,000 euros for own residence (saving 25,000 euros on a 280,000-euro property).

In Wallonia

Since 2025, the abatement is 40,000 euros on registration fees for own residence, saving 5,000 euros. The cheque-habitat was abolished.

Non-Financial Advantages

Advantages of Ownership

• Security: no risk of eviction or unexpected rent increases
• Freedom: you can renovate, decorate, and transform as you wish
• Forced savings: every mortgage payment increases your wealth
• Inflation protection: your monthly payment stays fixed (fixed rate) while rents increase

Advantages of Renting

• Flexibility: easy to move for professional or personal reasons
• No maintenance worries: major works are the owner's responsibility
• Liquidity: your savings remain accessible, not locked in bricks
• No depreciation risk: if the market drops, you are unaffected

When Renting Is Clearly Better

• You plan to stay less than 5 years in the same city
• Your professional situation is unstable (temporary contract, starting freelancer)
• You lack sufficient personal contribution (at least 10 to 20% of the price)
• You are a disciplined investor who systematically invests the difference

When Buying Is Clearly Better

• You plan to stay at least 10 years in the same place
• You have a permanent contract and a contribution of 20% or more
• Interest rates are low (below 3%)
• You are buying in Flanders (3% registration fees)
• You lack the discipline to invest the difference every month

To explore prices in the municipality that interests you, check our interactive price map. And to estimate your purchase costs, use our notary fee calculator.