Short answer
An early resale can work but needs enough net appreciation to cover buying and selling costs, interest and maintenance. Five years is not an automatic crossover; model several sale prices.
Important variables
- Buying and selling cost
- Amortisation and balance
- Net sale price
- Rental alternative and invested equity
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Worked example
€45,000 acquisition cost and €20,000 selling cost create a €65,000 hurdle before interest and maintenance. Moderate appreciation does not automatically cover it.
Break-even: What changes the result?
A longer hold spreads one-off cost over more years. A favourable purchase or low transaction cost reduces the required resale price.
Common mistakes
- Reading gross sale price as profit
- Not deducting remaining debt
- Modelling rent without invested capital
Terms in this guide
Property transfer taxOne-off tax on a property purchase; the amount depends on jurisdiction.Property appreciationNominal change in property value over time; it is a scenario assumption, not a guarantee.Property sale costsCosts deducted from gross proceeds when the property is later sold.Break-even holding periodTime at which the ownership path reaches the renting path under current assumptions.
Sources & assumptions
- European Central Bank — Bank interest rate statistics (2026-08-17)
- RATIOXA — Methodology and formulas (2026-08-17)
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