Should you rent or buy?
Enter property price, equivalent rent, and your time horizon to see the break-even year between buying and renting in Paraguay.
Buy vs rent
What you'd pay for a similar property in the same area.
Estimated rate 10.4%, max term 30 years.
Show year-by-year breakdown
| Year | Buy net cost | Rent net cost |
|---|---|---|
| 1 | PYG 56,504,359 | PYG 37,200,000 |
| 2 | PYG 92,635,639 | PYG 76,308,000 |
| 3 | PYG 128,365,000 | PYG 117,421,320 |
| 4 | PYG 163,660,812 | PYG 160,642,223 |
| 5Break-even | PYG 198,488,363 | PYG 206,078,164 |
| 6 | PYG 232,809,530 | PYG 253,842,056 |
| 7 | PYG 266,582,418 | PYG 304,052,542 |
Assumptions: home appreciation 3.0%/yr, rent inflation 5.0%/yr, opportunity cost 4.0%/yr, closing costs 4.0%, tax + maintenance 2.0%/yr.
Estimate only. Real changes in rates, market rents, or loan conditions can shift the break-even point.
How buying and renting compare
Both the buyer and the renter start with the same liquid cash (down payment + closing costs). What changes is what each one does with that cash and how much they pay every month:
- The buyer puts that cash into the property and pays mortgage, tax, and maintenance. Their wealth grows with home appreciation and loan amortization.
- The renter keeps the cash invested at the opportunity-cost rate and pays rent. Their wealth grows from investment returns.
The break-even year is the first year when the net cost of buying stops being higher than the net cost of renting. Before that year, renting is cheaper; after that year, buying is.
Frequently asked questions
What if my down payment isn't actually invested?
If you wouldn't have invested it anyway, mentally drop the opportunity cost to 0% — the renting case becomes more expensive and buying breaks even sooner.
Why is the default appreciation 3%?
It's a conservative multi-year average for Paraguay. High-demand zones (central Asunción, Ciudad del Este) can run higher; rural areas lower.
What if I plan to stay less than 5 years?
Short horizons almost always favor renting — closing costs, taxes, and commissions don't have time to amortize against the savings on monthly payments.
What does the cost of buying include?
Down payment, closing costs, all mortgage payments, taxes, and maintenance. We subtract your equity (home value minus loan balance) at the end of the horizon.
More tools in Paraguay
Rental yield calculator
Calculate gross and net rental yield (cap rate) on a Paraguay rental property.
What is my property worth?
Estimate your home's market value with real data from comparable listings in your area.
How much can I rent my property for?
Estimate the monthly rent for your house or apartment with real data from comparable rentals in your area.
How much can I afford?
Estimate your buying power in Paraguay by income, existing debt, and financing program.
Sources and references
Rates and ranges used as starting points.
Last updated: May 5, 2026