Rent vs Buy Calculator

It depends on property prices, interest rates, rental costs, and how long you plan to stay. In expensive cities like Sydney and Melbourne, renting and investing the difference can build more wealth in the short term (under 5-7 years). Over longer periods, buying typically wins due to property growth and forced savings through mortgage repayments.

The calculator includes stamp duty (calculated for your state), mortgage repayments, annual holding costs (council rates, insurance, maintenance, strata), and rent increases. For the renting scenario, it assumes your deposit and monthly savings are invested at the specified return rate.

The breakeven point typically falls between 5-10 years, depending on your location and market conditions. In high-growth areas with lower rental yields, buying breaks even sooner. The calculator shows your specific breakeven year based on your inputs.

Yes. If you select 'First Home Buyer', the calculator applies your state's first home buyer stamp duty concessions automatically. This can significantly reduce upfront costs and bring the breakeven point forward.

A diversified portfolio of Australian and international shares has historically returned 7-10% per year over the long term. A more conservative estimate using balanced funds would be 5-7%. The default of 7% represents a reasonable long-term average after fees.

Include council rates ($1,500-$3,000/yr), building insurance ($1,000-$2,000/yr), and maintenance ($2,000-$5,000/yr). If you're buying a unit or apartment, add strata fees ($2,000-$8,000/yr). The default of $6,000 per year suits a freestanding house. For units with strata, increase this to $10,000-$15,000.