Rent or Buy Calculator

Is it cheaper to rent or buy?

This is a common question Aussies have. While once owning a home was the Australian dream, it seems to now be less appealing.

As the cost of buying a house has sky-rocketed with wages not increasing at nearly the same pace Aussies are finding it harder and harder to afford a home. However, this isn’t the only reason, as remote work is becoming more popular so is the flexibility of one’s living location.

The younger generation seems to enjoy moving around. With this in mind renting would seem like the obvious choice. It is easier to pack up and go, you’re not tied to a long-term mortgage and they can often rent a better home than they could buy.

Nonetheless, it is still commonplace to eventually settle in and make the purchase of a home. People often value instead building equity in a home than “paying down someone else’s mortgage”. There are many benefits to owning a home and equity is the most popular one.

Now there is no right or wrong answer to the question of buying or renting and everyone’s situation is unique. The New York Times has a great calculator that you can use to run the numbers and see which option is the most cost-effective for you.

You can see the calculator here - RENT OR BUY CALCULATOR