Should you rent or buy in Australia?
Rent vs Buy Calculator Australia
Should you rent or buy in Australia? Compare stamp duty, home loan repayments, rental costs, property appreciation, and investment returns to find your financial break-even point.
Enter your details
Buying costs
Renting & comparison
Rate on invested down payment
Over 10 years, our analysis suggests:
📈 Renting + investing looks stronger
Renting and investing the down payment produces $783,699 vs $695,135 home equity.
Buy: net equity
$695,135
After 10 years
Rent: invested net worth
$783,699
Down payment invested
Break-even
Beyond range
When buying overtakes renting
Net worth comparison over time
View year-by-year breakdown
| Year | Buy equity | Rent portfolio | Buy advantage |
|---|---|---|---|
| Year 1 | $212,674 | $218,478 | -$5,804 |
| Year 2 | $257,272 | $269,391 | -$12,120 |
| Year 3 | $303,884 | $322,882 | -$18,998 |
| Year 4 | $352,605 | $379,104 | -$26,499 |
| Year 5 | $403,534 | $438,220 | -$34,686 |
| Year 6 | $456,775 | $500,403 | -$43,628 |
| Year 7 | $512,438 | $565,838 | -$53,400 |
| Year 8 | $570,638 | $634,724 | -$64,086 |
| Year 9 | $631,495 | $707,269 | -$75,775 |
| Year 10 | $695,135 | $783,699 | -$88,565 |
How this calculator works
Australia's property market is among the most expensive in the world relative to income. Understanding the real cost of buying — including stamp duty (which can be $30,000–$50,000+ in some states), LMI (if your deposit is under 20%), council rates, strata fees, and maintenance — is essential before comparing it to renting.
This calculator models the full buying scenario against renting, including what your deposit and any rent savings could earn if invested in the sharemarket. Historically, Australian shares have returned around 7–10% annually (before tax), while property appreciation averages 5–7% nationally (higher in some capital cities).
The rent vs buy answer in Australia often depends heavily on the specific city and suburb. Yield compression in Sydney and Melbourne means renting is often cheaper than the mortgage for equivalent properties — making the investment of the down payment a valid alternative worth modelling.
Worked example
- 1Buying: ~AU$4,157/month repayment + AU$700/month costs ≈ AU$4,857/month total
- 2Renting: AU$2,800/month rising 3%/year
- 3Deposit AU$170,000 invested at 7% grows to AU$334,000
- 4Property appreciates at 5%/year to AU$1,385,000; equity ~AU$779,000
- 5Net buying advantage after 10 years: ~AU$445,000
Frequently Asked Questions
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Disclaimer: Calculations are estimates for general guidance only and do not constitute financial advice. Home loan rates, stamp duty, and LMI costs vary by state, lender, and borrower circumstances. Consult a licensed mortgage broker or financial adviser before making property decisions.