What are the main non-recoverable costs of buying a property?

Non-recoverable costs when buying include mortgage interest, property taxes, maintenance fees, home insurance, and one-off transaction costs like stamp duties and legal fees. These are expenses you don't get back, unlike the principal portion of your mortgage payments which builds equity.

How does property appreciation affect the buy vs. rent decision?

Property appreciation can significantly favor buying if the property's value increases over time. This increase in value contributes to your net worth. However, appreciation is not guaranteed and depends on market conditions. This calculator allows you to input an expected appreciation rate to see its potential impact.

What is the 'opportunity cost' considered in this calculator when renting?

When you rent, the money you would have used for a downpayment and other buying costs can instead be invested elsewhere. This calculator estimates the potential returns from investing that capital (e.g., in stocks or bonds) over the comparison period. This 'opportunity cost' of not investing is factored into the financial comparison.

Singapore Property: Buy vs. Rent Calculator

Deciding whether to buy or rent a home is a major financial decision. This calculator helps you compare the estimated long-term financial outcomes of both options in Singapore.

Scenario Inputs

Comparison Timeframe (Years)

Annual Investment Return Rate (%)

If renting, what's your estimated annual return if downpayment funds were invested?

If Buying Property

Property Price (SGD)

Downpayment (%)

Loan Interest Rate (Annual %)

Loan Tenure (Years)

Annual Property Tax (SGD)

Annual Maintenance & Insurance (SGD)

One-off Buying Costs (SGD)

Use our main calculator to estimate stamp duties.

Expected Annual Property Appreciation Rate (%)

If Renting Property

Current/Expected Monthly Rent (SGD)

Expected Annual Rent Increase Rate (%)

Annual Renter's Insurance (SGD, Optional)

Understanding the Buy vs. Rent Decision

Choosing between buying a home and renting one is one of the most significant financial decisions you'll make. It's not just about monthly payments; it involves considering upfront costs, ongoing expenses, investment potential, and lifestyle factors.

Key Financial Considerations:

Upfront Costs (Buying): This includes the downpayment, Buyer's Stamp Duty (BSD), Additional Buyer's Stamp Duty (ABSD if applicable), legal fees, valuation fees, and other transaction costs. Our main calculator can help estimate these.
Ongoing Costs (Buying): Monthly mortgage payments (principal and interest), property taxes, maintenance fees (especially for condos), home insurance, and potential repair costs.
Ongoing Costs (Renting): Monthly rent payments (which may increase over time) and potentially renter's insurance.
Building Equity (Buying): A portion of your mortgage payment goes towards reducing the principal loan amount, thereby building equity in your property over time.
Property Appreciation (Buying): If your property value increases, it contributes to your net worth. However, appreciation is not guaranteed.
Opportunity Cost (Renting): The money you would have used for a downpayment and buying costs can be invested elsewhere if you rent. This calculator considers the potential returns from such investments.

Non-Financial Factors:

Stability vs. Flexibility: Owning a home offers stability and the freedom to customize. Renting offers more flexibility to move for job changes or lifestyle preferences.
Responsibility: Homeowners are responsible for all maintenance and repairs. Renters typically have the landlord handle these.
Lifestyle Goals: Consider your long-term plans, family needs, and desired lifestyle.

This calculator aims to provide a financial comparison to aid your decision-making process. It's recommended to also consider these non-financial aspects.

Buy vs. Rent FAQs

How does this calculator determine if buying is 'better'?

The calculator compares the estimated net financial position after the specified timeframe. It considers all out-of-pocket expenses for both scenarios. For buying, it also factors in the estimated value of your home (after appreciation) minus any outstanding loan balance to determine your net equity. The "Financial Advantage" then shows which option leaves you in a better financial position based on these projections.

What if I plan to sell the property before the loan tenure ends?

This calculator estimates your financial position at the end of the "Comparison Timeframe" you input. If you sell before the loan tenure, the calculations for property appreciation and remaining loan balance at that point would be relevant. The overall principles of comparing costs and equity still apply.

Are taxes on rental income or capital gains from property sale included?

This calculator does not explicitly factor in potential income tax on rental income (if you were to rent out the property you bought) or capital gains tax (Singapore currently does not have a broad capital gains tax on property for individuals, but Seller's Stamp Duty might apply if sold within a short period). These are more advanced considerations for specific investment scenarios.