PilotRate
Back to Mortgage Calculator

Australia Buy vs Rent Calculator

Compare the long-term financial outcome of buying a home versus renting in Australia. See your projected net worth, breakeven year, and total costs under either path.

Purchase & Loan

$
$100,000$3,000,000
$
$37,500$750,000
5%100%
%
1%10%
yrs
5 yrs30 yrs

Used for LMI calculation

Rental

$
$500$10,000

Your Estimate

Renting Net Worth at Year 10

-$72,001

Buying Net Worth

-$274,458

Renting Net Worth

-$72,001

Difference

Renting saves $202,457

Renting is the better financial choice throughout this period. Buying never catches up within 10 years.

BuyingRenting

Net Worth Over Time

Buying
Renting
First Home Buyer Guide Australia 2026
First Home Buyer🇦🇺 Australia

First Home Buyer Guide Australia 2026

Everything you need to know about buying your first home in Australia — stamp duty concessions, the First Home Owner Grant, LMI, and how much deposit you really need.

Read article

Australia Buy vs Rent — Frequently Asked Questions

Is buying always better than renting in Australia?
No, buying is not always better than renting in Australia. The right choice depends on how long you plan to stay, local property prices, and your investment alternatives. In expensive cities like Sydney and Melbourne, renting can be better financially in the short to medium term. Our calculator computes your personal breakeven year.
What are the upfront costs of buying a home in Australia?
Beyond the deposit, Australian homebuyers pay stamp duty (3% to 5% of purchase price depending on state), conveyancing fees ($800 to $2,500), building and pest inspections ($400 to $1,000), loan application fees ($0 to $1,000), valuation fees ($200 to $600), and lenders mortgage insurance if your deposit is under 20%. First-home buyers may qualify for stamp duty concessions.
How does the First Home Guarantee affect the buy vs rent decision?
The First Home Guarantee allows eligible first-home buyers to purchase with as little as 5% deposit without paying LMI, saving thousands. This significantly reduces the upfront cost of buying and shifts the breakeven year earlier. Combined with state-based first-home buyer grants and stamp duty concessions, buying becomes more accessible.
What is the breakeven year in an Australian buy vs rent analysis?
The breakeven year is the point when cumulative net worth from buying exceeds renting. In Australia, with high stamp duty costs, breakeven often takes 5 to 8 years depending on the city and property type. Before breakeven, renting builds more wealth. After it, buying is the better financial choice.
How does negative gearing affect the buy vs rent decision for investors?
Negative gearing allows Australian property investors to deduct any loss from their investment property against their taxable income. This can make buying an investment property more attractive from a tax perspective. However, negative gearing doesn't apply to owner-occupied homes, so it primarily affects the decision to buy an investment property versus renting.