Property
Buy vs Rent Calculator
Compare the long-term wealth difference between buying and renting — factoring in property appreciation, rental inflation, and investment returns.
Property Details
Mortgage
Rental Scenario
Market Assumptions
Annual return if the down payment is invested instead. Long-term US stock market average ≈ 7%
Comparison
🏠 Buy
🔑 Rent
Buy vs Rent: Key Factors to Consider
🏠 Buying = Forced Saving
The principal portion of your monthly mortgage payment is effectively savings — once the mortgage is paid off, the property is yours. Appreciation is a bonus — HK property has averaged 4–5% annual growth over the past 20 years.
🔑 Renting = Flexibility + Investing
Your down payment can be invested in stocks/funds for returns. No maintenance headaches, and you can relocate anytime. But rents rise every year and may eventually cost more than a mortgage.
💰 The Opportunity Cost of Your Down Payment
Buying locks up a large down payment. At 7% annual return, that capital could double in 10 years if invested. The key question in buy vs rent is: property appreciation vs investment returns on the down payment.
📊 Hong Kong Reality Check
For a HK$6M property: monthly mortgage ≈ HK$25,000 (30-year), similar-area rent ≈ HK$20,000. Renting costs less in cash terms for the first few years, but buying typically pulls ahead after 10–15 years.