Rent vs buy calculator
Should you buy or keep renting?
Enter your rent, the price of what you would buy, and how long you plan to stay. See the total cost each way over your horizon, including equity built. It updates as you type.
Upfront buy costs = 5% of purchase price (stamp duty + settlement + legals). Mortgage over 30 year term at fixed quoted rate. Equity = home value at horizon minus remaining loan balance. Excludes maintenance, rates, and insurance. Indicative only.
Why this matters
What the calculator is actually telling you.
Renting is not throwing money away, but it is not building equity either. Buying commits you to upfront transaction costs (stamp duty, legals) and a mortgage, but it also builds equity through both principal repayment and property appreciation. The question is not "which is right" but "which costs less over the years I actually plan to stay in Perth."
The break-even sits around 5 to 8 years for most Perth scenarios. Under 3 years the transaction costs of buying rarely justify themselves. Over 10 years the equity build almost always wins. In between depends on your specific rent, price, rate, and growth assumptions.
Questions
Frequently asked.
At what point does buying beat renting in Perth?
Rent versus buy break-even in Perth is usually 5 to 8 years, though it depends heavily on rent inflation, mortgage rate, and expected capital growth on the property. Longer holding horizons almost always favour buying because equity build accelerates while rent keeps compounding. Short-horizon plans (2-3 years) often favour renting because upfront transaction costs and stamp duty do not amortise cleanly.
Does this include stamp duty and settlement costs?
The calculator adds a rough 5% of purchase price for stamp duty, settlement, and legals as an upfront cost of buying. Actual Perth stamp duty varies by price bracket and first home buyer eligibility. For a specific figure use the WA Stamp Duty calculator or ask a broker.
What growth rate should I assume for Perth property?
Perth long-run capital growth has averaged around 5 to 6% p.a. across many decades, though 5- and 10-year windows can swing well above or below that. The Reserve Bank and CoreLogic both publish long-run capital growth figures for the Perth market. For a conservative baseline use 3-4%. For an optimistic case use 6-7%.
How does this account for rent going up?
The rent figure inflates by whatever percentage you enter each year. Perth rents rose 10%+ in some recent years but longer-term rent inflation runs closer to 3-4% p.a. Enter your best guess. The calculator applies annual compounding.
Where do I go for help applying this to a real Perth property?
Call 0489 082 257 or send your details. A Central Lending Solutions broker will run the rent-vs-buy against the actual suburb you want, current lender rates, and your borrowing power to show whether now is your window.
Want this applied to your real situation?
Talk to Harj.
No fee for most clients. A real conversation about your numbers and your options across 30+ lenders. Most clients hear back the same day.