Australian Property

Should You Rent or Buy Your Home?

A detailed financial comparison — enter your numbers below and find out which puts you ahead over time.

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Property & Finance

Core Figures

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Loan Parameters

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Growth Assumptions

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Purchase Costs

Stamp duty & LMI are estimated automatically — you can override.

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Ongoing & Selling Costs

Annual Ownership Costs

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Selling Costs (End of Period)

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Enter your numbers on the left and press Calculate to see your personalised comparison.

How It Works

This calculator compares the total wealth outcome of buying a home versus renting and investing the difference over your chosen time horizon.

For the buying scenario, we calculate mortgage repayments, property appreciation, equity built, and ownership costs (rates, insurance, maintenance). For the renting scenario, we assume you invest your deposit and the monthly savings (rent minus mortgage equivalent) into a diversified portfolio.

The break-even point shows when buying overtakes renting in total wealth. In most Australian capital cities, buying becomes advantageous after 5–7 years, depending on property growth rates and interest rates.

Frequently Asked Questions

Is it better to rent or buy in Australia in 2026?
It depends on your timeframe, location and finances. In most capital cities, buying becomes financially better after 5–7 years due to property appreciation. If you plan to move within 3 years, renting is usually cheaper after factoring in stamp duty and transaction costs.

How long do you need to own a home before buying is better than renting?
Typically 5–7 years in Australian capital cities, assuming moderate property growth (5–6% p.a.). This is the break-even point where equity gains from property appreciation outweigh the upfront costs of buying (stamp duty, LMI, legal fees).

What costs are included in the buying calculation?
Our calculator includes mortgage repayments (principal and interest), stamp duty, council rates, home insurance, maintenance costs, and property appreciation. It uses APRA's assessment rate to reflect realistic borrowing conditions.

Does the calculator account for investing the deposit if renting?
Yes. In the renting scenario, your deposit and the monthly difference between rent and mortgage repayments are assumed to be invested. You can set the expected investment return rate to compare outcomes fairly.

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Stamp Duty Calculator

Last updated: April 2026

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