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Rent vs Buy

Should you rent or buy? Compare the true net cost of each over how long you'll stay — factoring in home equity, appreciation, and what you'd earn by investing the cash instead.

Buying

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Renting

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Assumptions

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Verdict

Buying is cheaper

by about RM147,154.47 over 10 years

Net cost — buyRM64,447.00
Net cost — rentRM211,601.47
Monthly mortgageRM2,046.83
Home equity at endRM292,172.26
Property value at endRM671,958.19
Total rent paidRM247,619.79

Assumptions

  • • Net cost of buying = down payment + buying costs + mortgage paid + ownership costs − home equity built.
  • • Net cost of renting = total rent paid − investment growth on the cash a buyer would tie up.
  • • Excludes selling/agent fees and tax effects. Monthly cash-flow differences are not reinvested.

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Estimates only — outcomes depend heavily on your assumptions (appreciation, returns, rent growth). Not financial advice.

Frequently Asked Questions

Frequently Asked Questions

Does buying always work out better than renting?
No, and how long you stay matters more than anything else. Buying carries large upfront costs, and over a short holding period those are spread across too few years to recover. The longer you hold, the more the balance tilts towards buying.
What costs does the comparison include?
On the buying side: the down payment, the monthly mortgage, upfront buying costs as a percentage of the price (stamp duty and legal fees), and monthly owning costs such as maintenance, quit rent, assessment and insurance. On the renting side: your rent and the annual increase you expect. Buying is also charged the opportunity cost of the cash it ties up, at a return rate you set.
Are the assumptions official rates?
No. Appreciation, rent increases and investment returns are assumptions you choose, not published figures. Run a pessimistic set as well as an optimistic one - the answer often flips, and knowing where it flips is more useful than a single number.