Rent or buy calculator
Compare what you could have after some years of buying or of renting and investing the difference.
- If you buy, you could have
- If you rent, you could have
- Monthly cost of buying, first year
This calculator gives an estimate only, for general information. It isn't financial, tax or legal advice. Your bank, attorney, SARS or a tax practitioner confirms the final amounts.
How this is worked out
The comparison starts on the day you would buy. Buying means paying the deposit and buying costs, then a 20-year bond plus rates, levies and upkeep. At the end, you have the home's value, less what you still owe and 6% selling costs.
Renting means investing the deposit and buying costs instead, along with any monthly amount you save compared with owning. If owning costs less in a month, the buyer invests that difference.
Buying costs here are the transfer duty on the price plus an estimate of R60 000 for attorney and bond costs. Results depend heavily on your assumptions, and they don't include tax.
Questions people ask
Is buying always better than renting?
No. Buying tends to do better the longer you stay, because buying and selling costs are spread over more years. Renting gives you flexibility and can do better if you invest the difference consistently.
Which numbers matter most?
Usually how long you stay, the growth in the home's value, and the return on your savings. Try lower and higher values above to see how much the answer changes.
What doesn't this include?
It doesn't include tax, the value of security of tenure, the freedom to renovate or to move, or changes in your interest rate. Treat it as a way of testing your assumptions, not as a recommendation.