Buy vs rent: what to compare
A practical checklist for comparing two very different housing-cost scenarios.
Start with the full cash-flow picture
Buying can involve a deposit, loan repayments, insurance and ownership costs. Renting involves rent and potentially different upfront costs. Comparing only the mortgage payment with rent can miss important cash flows.
Time horizon matters
The longer the comparison period, the more assumptions about house-price growth, rent increases, interest and investment returns affect the result.
Include opportunity cost
Money used for a deposit cannot simultaneously be invested elsewhere. A buy-versus-rent model can illustrate that trade-off through a simple investment scenario.
Keep the result in perspective
Property values, rent, maintenance and investment returns are uncertain. Treat the calculator as a scenario tool rather than a forecast.
Try the related calculator
CALCULATOROpen the calculator
Change the assumptions and explore a scenario using your own figures.
Open calculator →Calculator results are estimates. Review the assumptions and limitations shown on the calculator page.