Question 1

When does buying become cheaper than renting?

Accepted Answer

The break-even point depends on your property price, interest rates, rental costs, and assumed property growth. In many Australian markets, buying becomes cost-effective after 5–10 years once you account for home equity and property appreciation.

Question 2

What is "net own cost"?

Accepted Answer

Net own cost equals total money spent on the mortgage, maintenance and rates minus the home equity you have built. Home equity is your property value minus the remaining loan balance — it is real wealth you own.

Question 3

Does this calculator include capital gains tax?

Accepted Answer

No. When you sell, you may owe capital gains tax on the profit, though primary residences are usually exempt. This is a general estimate only — consult a tax adviser for your specific situation.

Question 4

What is "maintenance & rates" as a percentage?

Accepted Answer

In Australia, annual maintenance typically costs 1–2% of property value, and council rates vary by location ($1,500–$3,500/year). We combine both as a percentage for simplicity — adjust to reflect your state and property type.

Question 5

Should I rent or buy?

Accepted Answer

This calculator shows the financial comparison only. Other factors matter: lifestyle flexibility, risk appetite, interest rate expectations, and job security. Consult a mortgage broker or financial adviser for advice tailored to your circumstances. This estimate is for general information only and is not financial advice.

Rent vs Buy Calculator

Property & Financing

Rental & Growth Assumptions

Frequently Asked Questions

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