Rent vs Buy Home Calculator

Renting and buying cost different things, so compare them over the same period. Buying costs interest, council rates, insurance, maintenance and stamp duty, but you build equity as the property value grows and the loan shrinks. Renting costs rent, but the deposit you did not spend can be invested. If a $800,000 property grows at 4.5% a year, it gains about $36,000 in the first year, but that gain is reduced by interest and holding costs. The result depends heavily on the growth rate and how long you stay, so test a range of assumptions, including growth of zero. Selling costs also matter if you may move within a few years.