Australia Rent vs. Buy Calculator
30-Year Wealth Trajectory • Property Capital Growth vs ASX 200 ETF Compounding • Main Residence CGT Shelter
Purchase & Rent Assumptions
Compare buying a property against renting and investing the surplus in index ETFs.
Buying takes 6 years to overcome upfront stamp duty, after which home equity outpaces renting.
30-Year Wealth Trajectory Milestones
| Year | Home Value | Buyer Equity | Renter ETF Wealth | Wealth Leader |
|---|
Rent vs. Buy in Australia: The Hidden Factors
The 100% Main Residence CGT Shelter
In Australia, your principal place of residence (PPOR) is completely exempt from Capital Gains Tax. If an $850,000 home grows to $4,000,000 over 30 years, that entire $3,150,000 capital gain is 100% tax-free. In contrast, an investment portfolio outside super must eventually pay CGT (even with the 50% discount) when sold.
The Upfront Friction of Stamp Duty
State stamp duty is a major upfront sunk cost (e.g. ~$33,000 in NSW on an $850k established home). This creates a financial drag in years 1 to 5, meaning renting and investing the deposit can lead in the short term. Buying typically achieves financial supremacy around years 5 to 7.
Next Steps & Related Australian Calculators
Strengthen your financial plan with these interconnected statutory computational models.
Australian Mortgage & Offset
Model exact principal, interest, and offset account dynamics.
Stamp Duty Calculator
Calculate upfront government purchase costs across all 8 states.
Borrowing Power Calculator
Determine your maximum buying budget before choosing to buy.
Australian FIRE & Super Bridge
Plan early retirement with outside-super index ETF portfolios.