Tools

Rent vs buy

What buying and renting each cost over the years you pick.

For 19 Arvocado Street, Coburg NorthClear

For 19 Arvocado Street, Coburg North

Verdict

No price growth

Renting costs less

$259k over 5 years

With 3% growth

Renting costs less

$112k over 5 years

Sale costs of 2.2% count in both scenarios.

Show price growth first

Average gap: $4,325/mo

With no price growth, buying does not pull ahead within 30 years. With 3% growth, buying pulls ahead in year 26.

How we got this
Rent vs buy difference$259,482

Arvocado cost model | as of 2026-07-06 | Tax and moving costs are not modelled. Price growth shows in the growth scenario.

5-year horizon.

Buying net cost$376,351

Arvocado cost model | Engine output.

Renting net cost$116,869

Arvocado cost model | Engine output.

VIC stamp duty$52,070

Victorian duty estimate

At the general rate. Paid once when buying.

Renter invests the difference$26,295

Arvocado cost model

The renter invests the $52k stamp duty at the start. Each month buying costs more than rent, the renter invests the gap: $176k over 60 months. It grows at the 3.5% deposit return.

Rates, insurance and maintenance, first year$13,965

Arvocado assumption

Council rates: 0.35% of price each year. Arvocado assumption. Councils charge rates on property value, so this scales with the price until you have the rates notice. Home insurance: 0.12% of price each year. Arvocado assumption. Building cover follows rebuild cost, which rises with the price, until you have a quote. Maintenance: 1% of price each year. Arvocado assumption. A yearly set-aside for repairs that scales with the price; older homes often need more.

Sale costs$20,900

Arvocado cost model

2.2% of the price when you sell, in both scenarios.

Break-even curve

Scenario: No price growth, including 2.2% sale costs

No crossover within 5 years

BuyingRentingBuying, 3% growth
$400k$300k$200k$100k$0012345

Years

Buying

$376k

Net cost over the horizon

Repayments and running costs
$354k
Loan paid off
-$51k
Stamp duty
$52k
Sale costs
$21k

Average net cost: $6,273/mo

Renting

$117k

Net cost over the horizon

Rent paid
$179k
Investment earnings
-$62k

Average net cost: $1,948/mo

Not legal, planning, or financial advice.

How this is worked out
LineTagAmount
Buying cash paid

Adds the monthly ownership costs across the selected horizon. Rates, insurance and maintenance rise with rent growth.

Estimate$354k
Loan principal paid down

Counts the loan principal paid down during the selected horizon.

Estimate-$51k
Sale costs at the end

Sale costs on the purchase price if you sell at the end. The growth scenario adds costs on the gain.

Estimate$21k
VIC stamp duty

VIC duty on the purchase price, paid once. Uses the first home concession when First home is on.

Estimate$52k
Buying cost after principal

Buying cash paid less principal, plus LMI, sale costs, and stamp duty.

Estimate$376k
Rent paid

Adds weekly rent across the horizon with the selected rent growth.

Estimate$179k
Deposit earnings if renting

Compounds the deposit while renting at the selected return.

Estimate-$36k
Renter invests the difference

The renter invests the stamp duty, and each month buying costs more than rent, the gap. Grows at the deposit return.

Estimate-$26k
Renting cost after deposit earnings

Subtracts deposit earnings and invested earnings from rent paid.

Estimate$117k
Price growth at 3%

Takes off the price gain and adds sale costs on that gain. Counts in the growth scenario only.

Estimate-$148k
Purchase price

Uses the price entered here or passed in from a linked property.

Your input$950k
Deposit

Uses the deposit entered here to set the starting loan size.

Your input$190k
LVR

Compares the loan amount with the purchase price.

Your input80%
Equivalent weekly rent

Uses the weekly rent entered for a comparable home.

Your input$639/wk
Horizon

Sets how many years of buying and renting costs are counted.

Your input5 years
Rent growth

Raises the rent each year by the selected growth assumption.

Assumption3%
Running cost growth

Raises rates, insurance and maintenance each year at the rent growth rate. Repayments stay flat.

Assumption3%
Return after tax

Compounds the unused deposit, and what the renter invests, at the selected return after tax.

Assumption3.5%
Sale costs

Counts agent and sale costs when you sell at the end, in both scenarios.

Assumption2.2%
Loan setting

Uses the selected loan rate and loan term. 6.2% is the RBA average rate on new owner-occupier home loans, July 2026 (table F6).

RBA6.2% p.a., 30 years
Council rates

A yearly share of the price, counted each month and raised each year at the rent growth rate. Councils charge rates on property value, so this scales with the price until you have the rates notice.

Arvocado assumption0.35%
Home insurance

A yearly share of the price, counted each month and raised each year at the rent growth rate. Building cover follows rebuild cost, which rises with the price, until you have a quote.

Arvocado assumption0.12%
Maintenance

A yearly share of the price, counted each month and raised each year at the rent growth rate. A yearly set-aside for repairs that scales with the price; older homes often need more.

Arvocado assumption1%
Tax and moving costsOffOutside

Share preview

No price growth

Renting costs less

$259k over 5 years

With 3% growth

Renting costs less

$112k over 5 years

Both include 2.2% sale costs.

Renting costs $259k less over 5 years under these assumptions.

19 Arvocado Street, Coburg North