Rent vs. Buy Calculator

No — it depends on how long you plan to stay, local property prices, and the rent-to-price ratio. In expensive cities like Sydney and Melbourne, buying is often much more expensive short-term. Over 10+ years, buying has historically outperformed renting for most Australians.

The money used as a down payment could instead be invested in shares or other assets. This calculator assumes a 7% annual return on that money if you rented instead — a significant ongoing cost that many rent-vs-buy comparisons ignore.

Stamp duty varies by state and purchase price. On a $650,000 property in NSW it’s approximately $25,000–$27,000. First home buyers may be fully exempt below certain thresholds. Use our dedicated Stamp Duty Calculator for exact figures by state.

Budget 1–2% of the property’s value per year for maintenance and repairs. Add council rates (~$1,500/yr), home and contents insurance (~$1,500/yr), and any strata or body corporate fees. These are often underestimated by first-time buyers.

Generally 5–7 years in most Australian capital cities, due to upfront costs like stamp duty and selling agent commissions (~2%). In high-growth markets with strong appreciation, the break-even can be shorter; in slow markets, longer.

No — this is a common myth. Rent pays for housing, just as mortgage interest and maintenance do. Renters who invest their down payment and the difference between rent and mortgage costs can build significant wealth. The best choice depends on your specific numbers.