Property

Renting or buying in Ireland: how to compare them fairly

Last updated 16 October 2026

Compare buying and renting on what you'd have after some years: home equity against investing the deposit and any savings. Assumptions decide it.

Comparing rent with a mortgage repayment isn't a fair test. Part of each repayment is capital you keep. But owning also brings stamp duty, maintenance, insurance and Local Property Tax (LPT), and the deposit could have been invested. A fairer test: after a number of years, which leaves you better off?

The method

the buyer pays the deposit, stamp duty and fees, then repayments, maintenance, insurance and LPT each year
the renter invests the same up-front money. Each year they invest the difference if owning costs more than renting (or draw on it if renting costs more)
at the end, compare the buyer's equity after selling costs with the renter's investments

An example

A €400,000 home in Dublin City with a 10% deposit and a 30-year mortgage at 3.8%, against renting a similar home at €1,600 a month. Assumptions: prices and rents rise 3% a year, maintenance costs 1% of the value, investments earn 5% a year, and selling costs 2%. These are illustrations, not forecasts.

Up-front cost of buying	€47,500.00
Monthly repayment	€1,677.45
After 10 years: buyer's home equity	€245,125.67
After 10 years: renter's investments	€124,451.88
Ahead after 10 years: buying	€120,673.79

Change the assumptions

Scenario	Better off	By
As above, 10 years	buying	€120,673.79
House prices flat for 10 years	renting	€7,457.33
Moving again after 3 years	buying	€17,060.19
Moving after 3 years, prices flat	renting	€18,919.19

Price growth does most of the work for the buyer. Over a short stay, stamp duty and selling costs take a bigger bite, so renting looks better unless prices rise.

Tax differences

renters can claim the rent tax credit: €1,000 each (€2,000 for a couple taxed jointly) in 2026, rising to €1,150 and €2,300 for 2027 once Finance (No. 2) Bill 2026 is enacted
a gain on your own home is free of Capital Gains Tax; investment gains are taxed, which the example doesn't deduct
first-time buyers of new homes may get Help to Buy, which changes the up-front cost

Run your own numbers with your rent, the homes you'd actually buy and a range of growth rates. If small changes flip the answer, the decision rests on security and flexibility as much as money.

Work it out

Sources

Revenue: Stamp Duty and property: rates (1% / 2% / 6% residential, 7.5% non-residential, 15% s.31E) (checked 25/10/2026)
Revenue: LPT valuation bands and rates 2026–2030, and 2026 local adjustment factors (checked 25/10/2026)
Revenue: Rent Tax Credit: how much can you claim? (checked 25/10/2026)
Citizens Information: Budget 2027 (checked 25/10/2026)

General information, not tax advice. HeyPenny is not a tax agent.