Rent vs buy calculator
Compare two paths over the same period: buying a home with a bond, or renting a similar home and investing the money you would otherwise have spent.
Your details
Buying comes out ahead by
R484 729.65
After 10 years, based on your assumptions
- Buyer's net worth
- R1 591 797.57
- Renter's net worth
- R1 107 067.92
- Upfront cash to buy
- R263 790.00
How we worked it out
- DepositR180 000.00
- Transfer duty and transfer costs (part estimates)R83 790.00
- Upfront cash needed to buyR263 790.00
- Monthly bond instalmentR16 173.75
- Buyer's net worth after 10 yearsR1 591 797.57
Home value less selling costs and remaining bond, plus any invested savings
- Renter's net worth after 10 yearsR1 107 067.92
Upfront cash and monthly savings invested
- Buying comes out ahead byR484 729.65
- This is a simplified model. Growth, returns, rates and costs are your assumptions, and real outcomes vary.
- Selling costs assume estate agent commission of about 5% plus VAT (an estimate).
Year-by-year comparison
| Year | Buyer | Renter |
|---|---|---|
| 1 | R186 499 | R355 440 |
| 2 | R303 513 | R446 589 |
| 3 | R428 060 | R536 726 |
| 4 | R560 703 | R625 273 |
| 5 | R702 052 | R711 573 |
| 6 | R852 770 | R794 889 |
| 7 | R1 013 581 | R874 386 |
| 8 | R1 185 270 | R949 132 |
| 9 | R1 375 677 | R1 025 063 |
| 10 | R1 591 798 | R1 107 068 |
Things the numbers do not capture
- Security of tenure and the freedom to renovate as an owner.
- Flexibility to move for work as a renter.
- The discipline needed to actually invest the difference every month.
- Large unexpected repairs, special levies or periods of vacancy.
Frequently asked questions
Is it better to rent or buy in South Africa?
There is no single answer. Buying tends to win over long periods when property values grow steadily and you stay put. Renting can win when you might move within a few years, or when rent is low compared to the price of an equivalent home and you invest the difference consistently.
What does this calculator assume?
The buyer pays the deposit, transfer duty and estimated transfer costs upfront, then the bond instalment and owner costs every month. The renter invests the same upfront cash and, each month, any amount by which buying costs more than renting (and the buyer invests the difference when renting costs more).
Why does the result change so much with growth and return assumptions?
Small differences compound over many years. Try a few realistic scenarios rather than relying on one answer.
Does it include selling costs?
Yes. The buyer's net worth assumes the home is sold at the end, less an estimated estate agent commission of about 5% plus VAT.