Rent or buy a home in Colombia?

It depends on three things: how much rent costs compared with the price, the mortgage rate versus what your savings could earn, and how many years you will stay. Buying has high entry and exit costs, so it usually needs several years and some appreciation to beat renting and investing the difference.

A COP 350,000,000 home that rents for COP 1,600,000 a month, 30% down, a 12% E.A. mortgage over 15 years, 5% appreciation, rent rising 5.1% a year and savings earning 8% E.A. Over 10 years renting and investing comes out ahead by about COP 60,280,131. Every assumption is editable.

Both start with the same cash. The renter invests the down payment and purchase costs. Each month, whoever spends less invests the difference at the same return. At the end, the buyer sells (paying selling costs and the remaining loan) and the renter keeps the investments. The higher net worth wins.

For residential leases, at most the previous year's IPC (Ley 820 de 2003). Renewals in 2026 can rise up to 5.1%, the 2025 IPC published by DANE. The calculator uses that figure by default.

At purchase: notary, registration, beneficencia and title study, often 1.5% to 3% of the price. Every year: property tax (predial), maintenance and home insurance. When selling: agent commission and closing costs. Building fees (administración) are paid by whoever lives there, so they are left out of both sides.

Yes, in favor of buying. The calculator does not include them: a subsidy lowers the price you pay and FNA or VIS rates lower the mortgage rate. Enter the price after the subsidy and your real rate to see the effect.