- Property value
- R 3 257 789
- Less home loan
- − R 1 331 814
- Less selling costs
- − R 162 889
- Buyer's side investment
- + R 0
Home loan calculatorBuy or Rent a Home Calculator
A home is personal. The comparison should be honest.
Compare the cash needed today, the complete monthly cost and the wealth each option could build—assuming the renter invests every rand saved.
01 Compare like with like02 Count every cost03 Invest the difference
01
Your comparison
Start with two homes that serve the same need.
Use the market rent for a genuinely comparable property in the same area. A smaller rental compared with a larger purchase will make renting look unfairly attractive.
Home loan requiredR 1 800 000Purchase price less deposit
Estimated bond repaymentR 17 971 / month10,5% over 20 years
Transfer dutyR 33 786Current SARS table from 1 April 2026
Upfront cash difference invested by the renterR 293 786R 313 786 higher upfront cash − R 20 000 lower upfront cash
02
Complete costs and assumptions
Look beyond rent versus the bond instalment.
Buying includes transaction costs, interest, rates, levies, insurance, upkeep and an eventual sale. Renting includes escalation, insurance, moving and the opportunity to invest.
Buy Home loan and once-off costs+
Own Monthly homeowner costs+
Rent Rental costs+
Grow Long-term assumptions+
Complete homeowner cost · month 1R 23 588 / monthBond + rates + levy + building insurance + maintenance allowance
Complete rental cost · month 1R 15 250 / monthRent + renter insurance
Initial monthly difference investedR 8 338 / monthRenter invests the cash-flow saving
03 · Long-term wealth result
Renting and investing is ahead by R 45 168 after 10 years.
This is a scenario result, not a universal answer. Small changes in time, property growth, interest rates, rent escalation or investment returns can change the outcome.
- Invested upfront difference
- Included
- Monthly differences invested
- Included
- Investment balance
- R 1 786 050
- Rental deposit
- + R 22 204
Estimated financial crossoverNo crossover within the selected period
Under these assumptions, buying does not overtake renting and investing before the selected end date.
Net wealth over time
Watch transaction costs, equity and investing interact.
BuyRent + invest
Today
R 100 000R 308 786
Year 1
R 222 971R 440 405
Year 3
R 492 987R 716 824
Year 5
R 799 202R 1 010 254
Year 7
R 1 147 308R 1 319 475
Year 10
R 1 763 085R 1 808 253
The first value at right is buying; the smaller second value is renting and investing. Negative starting wealth is displayed as a zero-length bar.
+
Understand the result
Separate capital from the cost of living there.
A bond repayment is not entirely a cost: capital creates equity. The comparison below shows where the cash went over the selected period.
- Bond interest paid
- R 1 688 315
- Bond capital repaid
- R 468 186
- Transaction, ownership and selling costs
- R 1 158 717
- Equity before selling costs
- R 1 925 975
- Rent paid
- R 2 372 543
- Insurance and moving
- R 44 542
- Investment at the end
- R 1 786 050
- Rental deposit at the end
- R 22 204
!
Stress test the answer
Would the conclusion survive less friendly assumptions?
Each card changes only one assumption. A decision that reverses easily deserves more caution and a larger financial buffer.
04
Lifestyle lens
The financially stronger answer may not be your better home.
These choices do not change the calculation. They surface the personal value of stability, flexibility, control and responsibility.
Your selected lifestyle signalsLean towards the flexibility of renting
3 renting signals · 1 buying signal. Use this alongside—not instead of—the financial result.
How this estimate works
A fair comparison needs disciplined assumptions.
- Primary residence
- The model is for a home you occupy, not a rental property or business purchase.
- Transfer duty
- Calculated using the SARS table effective from 1 April 2026. VAT transactions and exemptions are not modelled.
- Renter invests the difference
- Unused upfront cash and every monthly saving are invested at the return entered.
- Buyer also invests savings
- If renting later becomes more expensive, the buyer invests that monthly difference.
- Home-loan calculation
- Monthly instalments use the entered rate and term. Bank fees, credit life and rate changes are excluded unless reflected in your inputs.
- Comparable homes
- The purchase and rental properties are assumed to provide broadly equivalent accommodation and location.
- Rental deposit
- Assumed refundable in full and grown at the separate deposit-return assumption.
- Sale at the horizon
- The buyer's result deducts the entered selling-cost percentage so both options are liquid at the comparison date.
- Yearly cost increases
- Rent and inflation-linked running costs stay at their entered values for months 1–12, then increase at the start of each new year.
Important: This is an educational illustration, not property, legal, tax, credit or investment advice. Property growth, investment returns, maintenance, selling costs and interest rates are uncertain. Confirm transfer and bond costs with a conveyancer and lender, and use a property inspection and appropriate professional advice before buying.