Rent or buy: an honest calculation

Add up all the payments: rent, utilities (if not included), internet. That is your full monthly housing cost as a tenant. The deposit is a temporary expense — it comes back; the agency fee should be amortised over the term of the lease.

Renting lets you change job, district or country without losing your invested capital. That flexibility has a real financial value — especially if you are early in your career or working in an unstable industry.

If you rent, the down payment (which you are not paying) keeps earning a return on deposit. That return reduces the real cost of renting. Add it to your calculation — without it, the comparison is unfair.

Add to the monthly payment: property tax, property insurance, the cost of managing the building (if the flat is in a complex with a homeowners' association). In the first years, 70–80% of the payment goes on interest, not on reducing principal.

The international standard is to set aside 1–2% of the property's value annually for maintenance and repairs. On a USD 80,000 flat that is USD 800–1,600 a year, or USD 65–135 a month. Owners often forget this expense — until the time comes to replace pipes or windows.

Notary, registration, valuation, agency fee — 3–6% of the price on purchase. On sale — another 2–4%. In total, 5–10% of the flat's price 'disappears' just on entry and exit. If you plan to live there for less than 5–6 years, that one-off expense is hard to earn back.

In Uzbekistan, income from selling a property owned for less than 3 years is taxed. Check the current rules before buying: in some cases the tax eats up all the 'price growth' of the flat in the first years.

Add up all one-off purchase and sale costs. Divide by the monthly difference between the full cost of renting and the full cost of owning. The result is the number of months after which buying starts to 'win'. In most Uzbek cities that is 5–8 years.

If you plan to live in the city for less than 4–5 years, renting is almost always financially better. If the rent on a comparable flat is less than 4% of its price a year, the market is overheated. If the down payment swallows your entire 'buffer', after the purchase you live without a financial cushion.

A long horizon (7+ years), a stable income, a down payment without damage to your reserve fund, a low rental yield in the market — under these conditions buying is usually more efficient. Also important: if the feeling of 'your own corner' has high personal value for you, that is part of the calculation too.