When buying reaches its crossover

Short answer #

The crossover is the first holding period where buying and renting reach equal ending wealth under the same assumptions. It is scenario-specific, not a universal minimum.

Important variables #

• Price, rent and holding period
• Rate, principal and remaining balance
• Buying, maintenance and selling cost
• Appreciation and alternative return

Worked example #

€48,000 buying cost spreads to €800 monthly over 5 years or €200 over 20 years, before finance and sale.

Break-even: What changes the result? #

Test the main driver as a cautious, central and optimistic range. Also check whether the ranking reverses at a crossover or remains robust across the range.

Common mistakes #

• Comparing mortgage payment directly with rent
• Omitting transaction cost or remaining debt
• Treating appreciation as guaranteed

Sources & assumptions

• Deutsche Bundesbank — Bank Lending Survey Germany, July 2026 (2026-08-17)
• RATIOXA — Methodology and formulas (2026-08-17)