Rent vs Buy Calculator

Make an Informed Property Decision

Buying Scenario

10% of property price

Renting Scenario

Average SA rent increases: 6-8% p.a.

Assumption: Your R150 000 deposit is invested at 8% p.a. instead of going toward property

Investment value after 10 years: R323 838,75

Common Costs (Buyer pays these)

BUYING is the better financial decision

Over 10 years, buying puts you ahead by R1 343 206,36

Buying Analysis

Monthly Payment:R17 630,05
Total Paid:R2 345 605,44
Property Value:R2 686 271,54
Net Position:R340 666,10

Renting Analysis

Starting Rent:R8 000,00
Total Rent Paid:R1 326 379,00
Investment Growth:R323 838,75
Net Position:R-1 002 540,25

Additional Considerations

Buying Pros

  • • Build equity over time
  • • Property appreciation
  • • Fixed monthly payments (if fixed rate)
  • • Freedom to renovate
  • • Long-term investment asset

Renting Pros

  • • Flexibility to relocate
  • • No maintenance costs
  • • Lower upfront costs
  • • No property market risk
  • • Landlord handles repairs

Important Notes

  • • This calculator provides estimates only - consult a financial advisor for personalized advice
  • • Buying makes more sense for long-term (10+ years) ownership
  • • Consider your career stability and lifestyle before deciding
  • • Interest rates can change - factor in rate risk for variable bonds
  • • Property prices vary by location - research your specific area

Related Tools

Bond Calculator

Calculate monthly bond repayments and total cost

Transfer Duty Calculator

Calculate transfer duty on property purchases

Loan Calculator

Calculate loan repayments with extra payments