Rent vs Buy Calculator Australia 2026

Rent or Buy in Australia: How to Think About It

The rent-versus-buy question is less about house prices and more about opportunity cost. A buyer converts their deposit and stamp duty into property equity that grows tax-free (owner-occupied homes are exempt from capital gains tax). A renter keeps that capital and — critically — must actually invest both the lump sum and the monthly difference between rent and total ownership costs for the comparison to hold.

• Buying usually wins over long horizons (10+ years) in most Australian capitals because of leverage: a 20% deposit controls 100% of the property's growth, and the owner-occupier CGT exemption is the most generous tax break in the system.
• Renting can win over short horizons because stamp duty, loan establishment and selling costs consume several years of capital growth. Moving within 5 years often makes buying a losing trade.
• The discipline problem: studies consistently show most renters do not invest the difference. If you would spend the surplus rather than invest it, buying acts as forced savings and wins by default.
• Rates sensitivity: every 1% change in mortgage rates shifts monthly repayments by roughly $530 on an $850,000 loan — rerun the numbers under higher-rate scenarios before committing.

Model the purchase side in detail with our stamp duty calculator and mortgage calculator, or the investing side with the investment calculator.