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Buy vs Rent
Simulation and Reality

What does it really cost to buy a €300,000 apartment with a 25-year mortgage? We compare real costs, myths, and an ETF alternative with data.

March 31, 2026 10 min read Statbel, CIB, BNB data Belgium
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Popular 🏠 Buy vs Rent — Simulation €300K apartment purchase simulation. Monthly payment breakdown, myths vs facts, ETF alternative comparison. Current page 📊 Property Prices — By City Statbel 2025 data. Apartment and house prices across 35 cities including Brussels, Antwerp, and Ghent. Read more → 🔑 Rent Prices — By Region CIB 2025 data. Brussels €1,100, Flanders €800, Wallonia €650 — why are they so different? Read more →

💰 €300,000 Apartment — Simulation

A simulation of purchasing a €300,000 apartment with a 100% mortgage at 4% fixed rate over 25 years.

💸 Total Repayment €475,000 Over 25 years
📉 Total Interest €175,000 Paid to bank
📆 Monthly Payment €1,583 25-year fixed
🔑 Same Apt. Rent €1,100~1,200 Brussels 2BR (CIB 2024)
💡 Key comparison: The mortgage (€1,583) costs €483 more than rent (€1,100). But €1,000 of that builds equity (principal), and the real cost (interest) is just €583 — half the rent.

🔍 The €1,583 Monthly Payment Breakdown

Your monthly payment consists of two parts. One builds wealth, the other is a cost.

🏦 Principal (Asset) €1,000/mo Paying off debt builds equity. After 25 years, you own €300,000 outright.
💸 Interest (Cost) €583/mo The cost of borrowing paid to the bank. This money does not come back.
Key takeaway: The principal repayment portion (€1,000) is "forced savings." After 25 years, you gain full ownership.
Note: The figures above are 25-year averages. In the early years, interest makes up a larger share; in later years, principal dominates.

⚠️ Myths vs Facts

Myth 1: €300K today will still be €300K in 25 years
Not necessarily. Population changes, interest rates, tax policies, inflation, new supply, and energy regulations (PEB) all influence property values.
Myth 2: You can rent a €300K apartment for €583/month
Not true. The average rent for a 2-bedroom apartment in Brussels is €1,100~1,200/month (CIB 2024) — about twice the interest-only cost (€583).

📈 Investment Alternative — ETF vs Real Estate

What if you invested the monthly principal repayment (€1,000) in ETFs instead?

€878,570 €1,000/month × 25 years, 8% annual return
📈 ETF Investment ~€878,570 Projected after 25 years
🏠 Real Estate €300K~500K Depending on market conditions
Caution: The ETF strategy requires discipline, consistency, and risk tolerance. And it does not provide a roof over your head.

🔎 The Hidden Costs of Renting

Frequent Moves
Over 25 years, tenants move an average of 8 times (every 3 years). This means moving costs, time, and stress.
No Ownership
You cannot freely repair or renovate the property.
Tied-Up Security Deposits
About 8 security deposits locked and released over time, with associated bank fees.
Annual Rent Increases
Rent rises 2~3% annually with the health index (indice santé). Mortgage payments stay fixed.
Zero Wealth Accumulation
After 25 years, a renter has nothing to show for it.

📊 Belgium Real Estate Market Overview

🇧🇪 National Median €255,000 Apartments
🏙️ Brussels Apartment €260,000 Median
📉 Charleroi Apartment €80,000 Median
For detailed prices by city, see the Property Prices Guide.
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