Rent vs buy: Is it cheaper to rent or buy?
Compare the monthly costs of renting and buying to find out when owning makes financial sense.
Use our rent vs buy calculator to see which option suits your budget and long-term goals.
THE SHORT ANSWER
Monthly instalments are cheaper when it comes to rent than paying a mortgage on the same property, especially in the early years. Buying, on the other hand, builds wealth, and in the long run it becomes profitable. The ideal choice depends on prices, interest rates, your down payment, and how long you plan to stay.
Rent vs buy calculator
Compare the approximate monthly cost of renting a house against owning the same one.
RENTING
$2,817
per month
BUYING (MORTGAGE)
$3,597
principal & interest
Buying comes with upfront costs such as deposit, fees, and stamp duty and ongoing costs like rates, maintenance, and insurance – but creates wealth. Renting, on the other hand, keeps the cash flow liquid, thereby allowing other investments. This is not a financial advice.
About to buy a house?
Find out how much you can borrow and the grants you may be eligible for.
Weigh both sides
Both have their own strengths and limitations. See how they compare.
- ✓Low monthly expense, no maintenance costs.
- ✓Flexible when it comes to job changes or lifestyle changes.
- ✓No huge deposits; invest them wisely.
- ✓Works best when you're unsure how long you are going to stay.
Let's Dive Deeper
Click on any section to learn more.
A mortgage repayment is only a part of the full cost of owning a house. You'll have to also pay council rates, building insurance, body corporate fees, and maintenance—that's nearly 1-2% of the property's value every year. Upfront costs include deposit, stamp duty, and conveyancing. The calculator above estimates repayments only, so your actual ownership costs will be higher.
Rent vs buy FAQs
Still deciding? Start here.
Compare rental options or explore what home ownership could look like.