✅ Fact checked
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🗓️ Updated: April 2026
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✍️ FinSight Editorial Team
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⚡ Free to use — no signup required
Australia’s Biggest Financial Decision
Rent vs Buy Calculator
Should you rent or buy? Compare the true long-term financial outcomes including mortgage costs, property growth, stamp duty, maintenance, and what happens if you invest your deposit instead.
🏠 Buying Details
🏢 Renting Details
📅 Comparison Period
🏠 Buying — yrs
Mortgage Payments
Stamp Duty
Rates & Maintenance
Property Value
Remaining Mortgage
Net Wealth (Equity)
🏢 Renting — yrs
Total Rent Paid
Deposit Invested
Investment Growth
Net Savings
The Rent vs Buy Debate in Australia
The answer isn’t always “buy.” It depends on how long you plan to stay, the rent-to-price ratio in your area, expected property growth, and what you could earn investing your deposit instead.
In most Australian capital cities, buying generally wins over 10+ years due to property appreciation. But in high-priced markets with low rental yields, renting and investing the deposit can sometimes outperform over shorter timeframes.
Disclaimer: This calculator uses simplified assumptions. Property markets vary by location. Consult a financial adviser before making major property decisions.
❓ Frequently Asked Questions
Is it better to rent or buy a home in Australia?
It depends on your situation, time horizon, and location. In most Australian capital cities, buying wins financially over 10+ years due to property appreciation. Over shorter periods (under 5 years), renting and investing the deposit can sometimes outperform, especially in expensive markets. Use our Rent vs Buy Calculator to compare your specific situation.
What upfront costs should I factor in when buying a home?
Key upfront costs include: stamp duty (the biggest — $15,000 to $50,000+), legal/conveyancing fees ($1,500-$2,500), building and pest inspection ($400-$700), mortgage registration and transfer fees (~$1,000), loan application fees (varies by lender), and Lenders Mortgage Insurance if your deposit is under 20%.
How much does it cost to maintain a home each year?
A general rule is to budget 1-2% of the property value per year for maintenance and repairs. On a $700,000 home that is $7,000-$14,000 per year. This covers things like painting, plumbing, appliances, roofing, and general wear and tear — costs renters don’t face.
What return do I need on my investments for renting to beat buying?
This varies by market. In cities with low rental yields and strong property growth (like Sydney), you typically need 8%+ annual investment returns for renting to match buying financially. In cities with higher rental yields and slower growth, the crossover point is lower. Our calculator lets you model different scenarios.
Does buying always build more wealth than renting?
Not always. It depends heavily on the local market, how long you stay, and what you do with the money you save by renting. Renting gives you flexibility and the ability to invest your deposit — if invested well, this can rival property returns. The key is that renting is not “wasting money” — you are paying for housing services.