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  2. Rent or buy

Would I be better off buying this home or continuing to rent?

Compare the wealth paths of renting and buying the same home.

These are example figures

Change any of them and the answer updates straight away.

The home and your rent

Start with the home price, rent and how long you want to compare.

At least 20% for this estimate

Rates, growth and costs

Adjust these assumptions to see how the comparison changes.

Sets standard transfer duty

Per year
Per year
Per year
Before tax, per year
Rates, insurance and upkeep
Per year
Share of estimated sale price

Buying ahead after 10 years

$49,528

Your answer

Buying ahead after 10 years

$49,528

Estimated net wealth after selling costs

After 10 years, buying leaves you $49,528 more net wealth; buying first moves ahead in year 6.

Buy net wealth
$390,250
After a hypothetical sale and loan payout
Rent and invest
$340,722
Upfront cash and yearly savings invested
Cash needed to buy
$144,305
Deposit, standard duty and legal costs
First buy-ahead year
Year 6
The first crossing, even if the paths cross again

Net wealth, year by year

BuyRent and invest
The buy path assumes a sale each year; the rent path invests upfront cash and yearly spending savings.

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Cash needed at purchase

Deposit
$120,000
Standard transfer duty
$22,305
Legal costs
$2,000
Total upfront cash
$144,305

Position after 10 years

Estimated home value
$806,350
Loan still owing
$399,973
Last annual repayment
$34,871
Annual rent
$40,709
Buy net wealth
$390,250
Rent and invest net wealth
$340,722

  • Loan

    Principal and interest; annual ARI schedule; no rate changes or offset

    Same as A.R.I.

  • Transfer duty

    Standard residential duty, with no concession

    Same as A.R.I.

  • Home value growth

    Compounds annually, rounded to whole dollars after each year

    Same as A.R.I.

  • Rent growth

    Year 1 is weekly rent × 52; later years compound with whole-dollar rounding

    Same as A.R.I.

  • Comparable cash

    The renter invests avoided upfront cash; each side invests its annual spending saving at year end

    To confirm

  • Wealth at hypothetical sale

    Every buying wealth point deducts selling costs; the main residence is assumed exempt from CGT

    To confirm

  • Deposit range

    20–100%; smaller deposits need a full LMI and scheme policy

    To confirm

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Keep this plan working for you

Your result stays on screen either way. An account adds the parts that follow you.

  • Save your scenarios

    Keep this comparison and revisit it when prices, rent or your plans change.

  • Start from your Portfolio

    Fills in an identified Property’s accepted price, state and selected loan rate.

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