Calculator shows: Estonia's rent could cost over 60,000 in 10 years

Many Estonians are postponing home purchases, hoping to save for a down payment, but in the meantime thousands of euros go to rent each month. Over ten years, the total rental payments could exceed 60,000, while property prices are likely to continue rising.

Estonia continues a trend where more and more people postpone buying a home – prices seem high and saving for a down payment is difficult. But while waiting for a better moment, money flows into the landlord's pocket every month.

Rent payments rise over the years

If we calculate based on an average monthly rent of several hundred euros, over ten years the total spent on rent easily exceeds 60,000. This is money that does not bring the tenant any assets or capital in return – it is simply lost.

Meanwhile, property prices in Estonia continue to rise. This means that long-term waiting does not necessarily make a purchase easier – most often it becomes more difficult, as both the necessary down payment and the loan amount increase.

Buying versus renting – what to think?

Financial advisers recommend calculating the actual costs of both options. Although a home loan comes with interest costs, the value of purchased property increases at the same time, and each loan payment increases the owner's stake in the real estate. A renter does not have this effect.

Of course, buying a home is not suitable for everyone – it requires stable income, a down payment, and long-term plans. But those who decide to buy get their investment back over a longer perspective, while renting remains simply a cost item.