Rent vs Buy: What to Check Before You Trust the Number

Updated 21 July 2026 · Property and home loans

A Rent vs Buy Calculator gives a fast answer, but the answer is only as good as what goes in. These are the mistakes we see most often with rent vs buy calculations in Australia, and how to avoid them.

1. Forgetting purchase costs

Stamp duty, conveyancing, inspections and moving can add several percent to the price.

2. Comparing headline rates only

Fees, offset accounts and flexibility on extra repayments can matter as much as the rate.

3. Assuming prices always rise

Property growth varies by location and period. Plan for flat or falling prices too.

4. Borrowing the maximum

Lenders test you at a higher rate, but your budget still needs room for rate rises, repairs and life changes.

5. Overlooking the detail that matters most here

Buying costs like stamp duty are a one-off hit, so buying tends to look better the longer you plan to stay.

A quick sense check

Owning cost = interest + rates, insurance and maintenance + lost return on the deposit − expected capital growth. With typical inputs the calculator returns cheaper in year one of Buying. If your own result looks wildly different, check that each figure is in the right unit and period (weekly, monthly or yearly) before drawing conclusions.