Rent or Buy?
Compare financial outcomes over time.
Renting Details
Buying Details
Assumptions
Verdict (7 Years)
Renting is cheaper
Save KES 2,322,873
Total net cost difference over 7 years.
Break-Even Point
20 Years
Time it takes for buying to become cheaper than renting.
Cost Comparison Over Time
Cumulative net costs (lower is better).
3 Years
Rent Wins
by KES 1.5M
5 Years
Rent Wins
by KES 2.0M
10 Years
Rent Wins
by KES 2.5M
15 Years
Rent Wins
by KES 2.0M
Financial Breakdown (Year 7)
Frequently Asked Questions
Expert insights on the Kenyan property market.
Should I rent or buy a house in Kenya?
The decision relies on your financial stability and long-term plans. Buying is generally better if you plan to stay for 5+ years and have a stable income to support mortgage payments. Renting offers flexibility and lower upfront costs. Our calculator helps you visualize the financial crossover point based on current market rates.
What is a good rent-to-price ratio in Nairobi?
In Nairobi, rental yields typically range from 6-12% annually. If the monthly rent is less than 0.8% of the property's value, it might be cheaper to rent than to buy. High-end areas often have lower yields (favors renting), while emerging satellite towns offer higher yields (favors buying).
How does inflation affect my decision?
Rent tends to increase with inflation (typically 5-7% annually in Kenya), while a fixed-rate mortgage payment stays the same. Over time, this makes buying more attractive as your housing cost becomes "locked in" while renters face increasing costs.
What are the hidden costs of buying?
Beyond the down payment, you must budget for Closing Costs (approx. 4% of specific property value for Stamp Duty, Legal Fees, and Valuation). Ongoing costs include Service Charge, Land Rates, and Maintenance (rule of thumb: 1% of property value annually).