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Compare renting vs buying over 5 and 7 years
See your estimated net position for each option based on rent, property growth and mortgage.
Assumed return if you invest your deposit while renting.
Net financial position after 5 and 7 years (estimates only)
Break-even: Buy wins after 1 years
Buy wins within 5 years. If you plan to stay 5+ years, buying may suit.
If you buy
Property value: $973,322
Loan balance: $599,110
Equity: $374,212
Net position: $314,212
If you rent
Total rent paid: $165,645
Deposit growth: $204,205
Net position: $38,560
If you buy
Property value: $1,052,745
Loan balance: $578,664
Equity: $474,081
Net position: $404,081
If you rent
Total rent paid: $239,069
Deposit growth: $225,136
Net position: -$13,933
Net position for buying = equity minus upfront and ongoing costs. Net position for renting = growth on your deposit minus total rent paid. This is a simplified model; actual outcomes depend on many factors. Not financial advice.
The rent vs buy decision depends on your personal circumstances, local property prices and how long you plan to stay. There's no single right answer.
Buying builds equity and offers stability, but comes with large upfront costs (stamp duty, legal fees) and ongoing expenses (maintenance, rates, insurance). Renting offers flexibility and lower upfront costs, but rent increases over time and you don't build property equity.
Estimates only. Not financial or tax advice. Full disclaimer for your rights and our limitations of liability.
Rates and thresholds last updated for the 2024–25 financial year.