Compare the total cost of renting versus buying over 10 years, including property appreciation, opportunity cost of your deposit, rent growth, and ongoing ownership costs.
The rent-vs-buy decision is more complex than comparing a weekly rent payment to a monthly mortgage repayment. Buying a home involves significant upfront costs (stamp duty, legal fees, LMI), ongoing costs (council rates, insurance, maintenance), and opportunity costs (your deposit could be invested elsewhere). Renting involves fewer costs but means you build no equity and face rent increases over time.
This calculator models a 10-year comparison because that is the minimum time horizon where buying typically comes out ahead in most Australian markets. Over shorter periods, the transaction costs of buying and selling (stamp duty, agent fees) often outweigh the equity gains.
The result depends heavily on three assumptions: property growth rate, investment return rate (for the renter's alternative), and rent growth rate. Historical Australian property growth has averaged 6–7% nationally over the long term, but individual suburbs vary enormously. Rents have grown 4–8% annually in recent years, well above the long-run average. No calculator can predict the future — use multiple scenarios to stress-test your decision.