Is it better to buy or rent in Australia?

There is no universal answer — it depends on your specific circumstances including property prices in your area, interest rates, how long you plan to stay, and your deposit size. In many Australian cities, buying becomes cheaper than renting after 7-10 years due to equity building and property growth, but high interest rates or short timeframes can make renting the financially smarter choice. Use this calculator with your real numbers to find out which is better for you.

What assumptions does this calculator make?

This calculator assumes a standard principal and interest home loan over 30 years, annual rent increases of 3% (in line with long-term Australian averages), and accounts for typical ongoing costs of ownership including council rates, insurance, and maintenance (estimated at 1-1.5% of property value per year). Property growth is applied at the rate you specify. The calculator does not account for stamp duty, capital gains tax, or the opportunity cost of investing your deposit elsewhere — these should be considered separately.

Buying vs Renting Calculator

Q: How long until buying beats renting?

The breakeven point where buying becomes cheaper than renting typically ranges from 5 to 15 years depending on the property market, interest rates, and your deposit. In high-growth areas with lower interest rates, buying can beat renting in as few as 3-5 years. In slower markets or when interest rates are high, it may take 10-15 years or more. The key factors are the gap between rent and mortgage repayments, property price growth, and how much equity you build over time.

Compare the true cost of buying vs renting over time. Enter your rent, property price, deposit, and interest rate to see which option leaves you better off.

Last verified: 1 July 2025

How long until buying beats renting in Australia?

The breakeven point where buying becomes cheaper than renting usually lands between 5 and 15 years, driven by 4 levers: the gap between rent and mortgage payments, property price growth, interest rates, and deposit size. In high-growth metro suburbs with rates under 6%, buying can beat renting in 3-5 years; in slower regional markets or at 7%+ rates it can take 10-15 years. Ongoing-cost benchmarks: council rates, insurance, and maintenance collectively ~1-1.5% of property value per year. Long-run Australian rent growth averages ~3% p.a. Source: CoreLogic; RBA.

Worked example. $600,000 property, $120k deposit, 6% rate, 30-year loan → repayments ~$2,878/mo. Rent on a similar place $550/wk → ~$2,383/mo. Owner's upfront cost = stamp duty (~$23k NSW existing buyer, $0 first-home) + $120k deposit. At 5% annual property growth, equity passes the cumulative rent paid around year 8-10— that's your breakeven. At 3% growth breakeven stretches to ~year 14. Under 5 years → rent winsnearly every time once stamp duty and selling costs are counted.

General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.

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How long until buying beats renting in Australia?

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