Rent vs. Buy Calculator in Sydney (2026)
Is it better to rent or buy a home in Sydney? See the break-even point and total cost comparison over your chosen time horizon.
Property Price
$910,000
65m² · $14,000/m²
Down Payment
$182,000
20% of purchase price
Monthly Mortgage
$4,780
6.2% rate · 25yr term
Monthly Rent
$2,800
City centre
📅 Break-even point: Year 8
Buying becomes cheaper than renting after 8 years in Sydney, once property appreciation and equity are factored in.
After 10 years: Buying saves approximately $59,670 vs renting.
Cumulative Cost Comparison — Sydney
Net costs after accounting for property appreciation and investment returns on down payment.
| Year | Net Buy Cost | Net Rent Cost | Property Value | Verdict |
|---|---|---|---|---|
| 1 | $68,823 | $17,357 | $950,950 | 🔴 Rent |
| 2 | $84,950 | $34,584 | $993,743 | 🔴 Rent |
| 3 | $98,299 | $51,633 | $1,038,461 | 🔴 Rent |
| 4 | $108,727 | $68,450 | $1,085,192 | 🔴 Rent |
| 5 | $116,086 | $84,975 | $1,134,026 | 🔴 Rent |
| 6 | $120,221 | $101,144 | $1,185,057 | 🔴 Rent |
| 7 | $120,966 | $116,887 | $1,238,384 | 🔴 Rent |
| 8 | $118,149 | $132,127 | $1,294,112 | 🟢 Buy |
| 9 | $111,587 | $146,782 | $1,352,347 | 🟢 Buy |
| 10 | $101,089 | $160,759 | $1,413,202 | 🟢 Buy |
Monthly Cost Breakdown
Buying
Mortgage: $4,780
Maintenance: $1,062
Property Tax: $183
Total Monthly: $6,025
Does not include down payment of $182,000
Renting
Monthly Rent: $2,800
Annual Increase: +3% assumed
Opportunity Gain: Down payment invested at 7%/yr
Total Monthly: $2,800
Rent increases 3%/yr in projection
Can you afford to buy in Sydney?
Monthly net income: $5,591
Monthly mortgage: $4,780
Mortgage-to-income ratio: 85.5%
🔴 Stretched — consider a higher deposit or longer term
Down payment savings needed: $232,050
At 20% savings rate, years to save: 17.3 years
Notes & Assumptions
This calculator uses the following assumptions for Sydney in 2026: property price $14,000/m² × 65m², mortgage rate 6.2% over 25 years, 20% down payment, transaction costs 5.5%, annual maintenance 1.4%, property appreciation 4.5%/yr, rent inflation 3%/yr, opportunity cost of capital 7%/yr. NSW stamp duty on $900k ~$35k. Foreign buyer surcharge +8%.
Same calculator, other cities
Frequently Asked Questions
Is it better to rent or buy in Sydney in 2026?
Based on 2026 data, buying a home in Sydney typically becomes financially advantageous after 8 years, once property appreciation and equity are factored in. With a mortgage rate of 6.2% and estimated annual appreciation of 4.5%, buying makes sense for long-term residents.
How much do you need to earn to buy in Sydney?
A typical 65m² apartment in Sydney costs approximately $910,000 in 2026. With a 20% down payment of $182,000, the monthly mortgage is $4,780. Financial advisors recommend keeping mortgage payments below 28–35% of net monthly income, which implies a gross salary of at least $191,197 per year to comfortably afford this purchase in Sydney.
What is the price-to-rent ratio in Sydney?
The price-to-rent ratio in Sydney is approximately 29x in 2026 — meaning it takes 29 years of rent to equal the purchase price. A ratio above 20 generally favours renting; below 15 generally favours buying. Sydney's ratio of 29 suggests renting is likely more efficient for shorter horizons.
How this calculator works
This calculator compares the total cost of renting versus buying over a configurable time horizon. It includes mortgage payments, transaction costs, maintenance, property appreciation, rent inflation, and the opportunity cost of tying up capital in a down payment.
What's included
- Mortgage principal and interest payments
- Transaction costs (stamp duty, notary, etc.)
- Annual maintenance and property tax
- Property appreciation and rent inflation
- Opportunity cost of capital (7% default)
What's not included
- Renovation or major repair costs
- Home insurance premiums
- Tax relief on mortgage interest (varies by country)
- Emotional or lifestyle value of ownership
Data sources: Central bank mortgage rate data, local property price indices, Numbeo rental averages, and official transaction cost schedules. Updated for 2026.