Rent vs buy verdict

For 14 Sydney Road, BrunswickClear

For 14 Sydney Road, Brunswick

Verdict

Renting costs less

$198k over 5 years

Renting costs $198k less over 5 years under these assumptions.

Average gap: $3,297/mo

How we got this
Rent vs buy difference$197,816

Arvocado cost model | as of 2026-07-06 | Price growth, tax, sale costs, and moving costs are not modelled.

5-year horizon.

Buying net cost$378,891

Arvocado cost model | Engine output.

Renting net cost$181,075

Arvocado cost model | Engine output.

Break-even curve

Closest gap year 1

BuyingRenting
12345

Buying

$379k

Net cost over the horizon

Average: $6,315/mo

Renting

$181k

Net cost over the horizon

Average: $3,018/mo

Buying cash paid

Estimate
How this is worked out

Adds the monthly ownership costs across the selected horizon.

$443k

Loan principal paid down

Estimate
How this is worked out

Counts the loan principal paid down during the selected horizon.

-$64k

Buying cost after principal

Estimate
How this is worked out

Subtracts principal paid down from the buying cash paid.

$379k

Rent paid

Estimate
How this is worked out

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

$226k

Deposit earnings if renting

Estimate
How this is worked out

Compounds the deposit while renting at the selected return.

-$45k

Renting cost after deposit earnings

Estimate
How this is worked out

Subtracts deposit earnings from rent paid.

$181k

Assumptions

Not legal, planning, or financial advice.

Purchase price

Your input
How this is worked out

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

$1.2M

Deposit

Your input
How this is worked out

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

$240k

LVR

Your input
How this is worked out

Compares the loan amount with the purchase price.

80%

Equivalent weekly rent

Your input
How this is worked out

Uses the weekly rent entered for a comparable home.

$808/wk

Horizon

Your input
How this is worked out

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

5 years

Rent growth

Assumption
How this is worked out

Raises the rent each year by the selected growth assumption.

3%

Deposit return

Assumption
How this is worked out

Compounds the unused deposit while renting at the selected return.

3.5%

Loan setting

Assumption
How this is worked out

Uses the selected loan rate with the standard loan term.

6.25% p.a., 30 years

Property price growth, tax, sale costs, and moving costs

Not modelled
How this is worked out

These items stay outside the comparison until the switch is turned on.

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Renting costs less

$198k over 5 years

14 Sydney Road, Brunswick

Not legal, planning, or financial advice.