Buying or renting? The dilemma for first-time buyers

Which is better, buying or renting?

Buying is usually better if you plan to stay for a few years. You also need enough savings. Renting is better if you want to remain flexible. This also applies if you are not yet sure where you want to live.

The table below shows what buying and renting mean for you, broken down by topic.

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What are the benefits of buying for a first-time buyer?

Buying gives you a home of your own, with predictable monthly costs and equity growth. For a first-time buyer currently renting, that is often the biggest draw.

We will go through the three main benefits of buying below:

• You build equity through mortgage repayments.
• You live without annual rent increases.
• You can make the home entirely your own.

You build equity through mortgage repayments

With every mortgage payment, you build up a bit of equity. With rent, you build no assets. On top of that, the property can increase in value, although that appreciation is never guaranteed. Don't count on an expected profit, as prices can also fall. The certain part is the repayment itself, because that amount becomes an asset.

You live without annual rent increases

Rent can go up every year. In contrast, your mortgage payments remain the same for years with a fixed interest rate. This means that as a buyer, you know much better where you stand. For a first-time buyer on a tight budget, that predictability provides peace of mind. You can plan your expenses for the coming years without any surprises.

You can make the home entirely your own

As an owner, you can renovate, paint, and decorate the home without needing permission. You rarely have that freedom in a rental property. If you want to remove a wall or install a new kitchen, you decide that yourself.

What are the benefits of renting for a first-time buyer?

Renting keeps you flexible, and you don't need much capital upfront. For some first-time buyers, that actually works out better. Furthermore, you don't have to worry about maintenance or a drop in property value. That is why renting is not automatically money down the drain, even if it sometimes feels that way.

We have listed the two biggest benefits of renting below:

• You have flexibility and can move more easily.
• You don't pay property taxes or major maintenance costs and need little capital.

You have flexibility and can move more easily

It is easier to cancel a rental contract than it is to sell a house. That is useful if your future is still uncertain. Renting keeps you agile if you don't yet know where you want to settle down. If your job or relationship changes, you can move without having to sell a property. For many first-time buyers, that freedom makes it worth renting for a while longer.

You don't pay property taxes or major maintenance costs and need little capital

As a tenant, you don't pay property tax or building insurance. Major maintenance is also the responsibility of your landlord. Furthermore, you don't need a large sum of your own money upfront, usually just a security deposit. This makes it faster to get a home by renting, without having to save for a long time first.

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How do the costs of buying compare to renting for a first-time buyer?

Buying requires a one-time investment of your own money for closing costs. Renting, on the other hand, mainly costs you monthly rent. In the long run, buying often works out cheaper because you build equity by paying off the mortgage. Those one-time costs can deter first-time buyers, even though they are often lower than many people think.

We break the costs of buying down into two parts:

• The one-time closing costs for first-time buyers.
• The monthly costs of a mortgage versus rent.

The one-time closing costs for first-time buyers

You add thepurchasing costs are the one-time costs on top of the purchase price. Think of the notary, thevaluation and advice. As a young first-time buyer, you often don't pay transfer tax thanks to the first-time buyer exemption. As a result, your closing costs are lower than the rule of thumb often cited.

Do you want to know exactly how much you need to save? Then read how much of your own money you need for your first home. Are you unsure if those one-time costs are feasible? Take your time to calculate them before you decide, so you know where you stand.

The monthly costs of a mortgage versus rent

Your monthly costs as a homeowner consist of interest and principal repayments, plus property tax and maintenance. In the beginning, you mainly pay interest, and later on, you pay more toward the principal. This allows your equity to grow gradually. A mortgage with National Mortgage Guarantee often results in a lower interest rate. That guarantee acts as a safety net in case of payment problems, so banks take on less risk. In 2026, you can get that guarantee with a mortgage up to €470,000.

Whether buying is cheaper per month depends on the interest rate and the property price. Therefore, calculate your maximum mortgagebeforehand, so you know which monthly costs suit you.

When is buying smarter than renting for a first-time buyer?

Buying is smarter as soon as your plans, savings, and income are ready for it. Use the four questions below to check if that applies to you:

• Are you planning to stay in this place for at least a few years? Buying only pays off if you spread the closing costs over several years.
• Do you have enough savings to cover the closing costs? Without that buffer, it will be difficult to make ends meet at the start.
• Is your income stable enough for a mortgage? Fixed monthly costs require a predictable income.
• Do you already know which city or neighborhood you want to live in? If you are unsure about that, renting keeps you flexible.

Are you still having doubts about any of these questions? Read how to overcome your doubts about buying .

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How does homeup help you make the move from renting to buying?

homeup helps first-time buyers get a home in two ways, without a bidding war. With both services, you only pay upon transfer of the keys. Here is what you get from homeup:

• Abuying agent on the open market guides you for €2999.
• With our exclusive listings you buy a home at a fixed price. Bidding over the asking price is then unnecessary, and our guidance costs €5999.
• Amortgage certificate homeup arranges in advance, so your financing is secured.
• All buyers on the homeup platform have been financially pre-screened.

This puts you in a stronger position than the average first-time buyer. Furthermore, homeup buyers purchase a home three months faster on average. Curious if this is right for you? Schedule a free consultation.

Want to know what buying can do for you? Read about the benefits of your first home. Also, go through our checklist for your first home . This will show you exactly which steps to take when moving from a rental to a home of your own.