Compare projected wealth from renting versus buying an Australian property over horizons from 5 to 30 years, with interest rate stress tests and a rentvesting scenario included. All figures are illustrative estimates based on the growth, rent inflation, and cost assumptions you enter.

What does this calculator actually compare?

It compares two paths side by side: renting a home while investing your savings, versus buying a home and building equity over time. For each year you choose, it tracks the renter's growing investment portfolio against the buyer's net equity after mortgage, upfront costs, and ongoing ownership costs. The result is a wealth comparison, not just a monthly payment difference.

What ongoing costs does the buying side include?

The calculator adds up mortgage repayments, council rates (which escalate at roughly 3% per year), building insurance (escalating at roughly 5% per year), maintenance (defaulting to 1% of the property value annually), water charges, and strata levies if applicable. Upfront, it also folds in stamp duty, conveyancing (around $2,500) and a building inspection (around $1,000), then deducts any First Home Owner Grant you may be eligible for.

What is the break-even point and how is it calculated?

The break-even point is the year at which a buyer's net equity first exceeds what the renter's invested portfolio would be worth over the same period. It accounts for the full deposit and upfront costs as the renter's starting investment, with any monthly saving (when rent is cheaper than ownership costs) added to that portfolio each year and compounded. The crossover year is shown on the wealth chart alongside a separate break-even on the upfront costs alone.

How does the rent growth assumption affect the results?

The tool defaults to 4% annual rent growth, which compounds year after year. At that rate, a weekly rent of $620 would grow to around $2,000 per week over 30 years. Because rising rent erodes the renter's cash advantage and pushes more of their income toward rent instead of investments, higher rent growth tends to make buying look more attractive over longer time horizons. You can adjust the rent growth slider to test different scenarios.

What is the opportunity cost of the deposit and how is it modelled?

When you choose to buy, the deposit and upfront costs are money you can no longer invest elsewhere. The calculator treats that lump sum as the renter's opening investment portfolio, growing at the investment return rate you set (defaulting to 6% per year). If the buyer's monthly costs exceed the renter's, the difference is added to the renter's portfolio each year. This way the comparison captures the true opportunity cost of tying capital up in a property.

Can I model buying with a 5% deposit or the Help to Buy scheme?

Yes. The financing approach selector includes a standard 20% deposit option, a 5% deposit scheme option (based on the First Home Guarantee, which has no income cap or place limit from October 2025), and two Help to Buy options. Help to Buy requires only a 2% deposit, with the government contributing up to 40% of the purchase price for a new home or 30% for an existing one. The government's equity share is repaid when you sell, so the calculator deducts it from your final equity figure.

Does the stress test tell me if I can afford a rate rise?

The stress test section shows what happens to both the monthly repayment and the final wealth comparison if interest rates rise by 1% or 2% above the rate you entered. It does not assess your personal borrowing capacity or serviceability - that depends on your full financial picture, which a lender or mortgage broker can assess properly. The tool is intended to show how sensitive the outcome is to rate movements so you can decide whether the figures still look workable under a higher-rate scenario.