Is it better to rent or buy a home?

It depends on how long you stay, local price-to-rent ratios, and appreciation. The break-even point (when buying becomes cheaper than renting) is typically 3–7 years in most US cities. In high-cost cities (San Francisco, London, Sydney) it can be 10+ years. Rule of thumb: if the price-to-rent ratio is above 20, renting may be more economical short-term.

What was the UK Help to Buy scheme?

Help to Buy was a UK government scheme (2013–2023) offering a 20% equity loan (40% in London) on new-build homes with 5% down. This made buying cheaper than renting for many first-time buyers. The scheme ended in March 2023. The replacement First Homes scheme offers 30–50% discounts to key workers and first-time buyers in England.

What is Australia's First Home Buyer Grant?

The First Home Owner Grant (FHOG) is a state-administered grant in Australia. Amount varies: NSW $10,000 for new homes up to $600K. Victoria $10,000 for regional homes. Queensland $30,000 (2023–2025 boost). All states have stamp duty concessions/exemptions for first-home buyers up to certain thresholds, which can save $15,000–$40,000.

🇬🇧 Help to Buy (ended 2023) 🇦🇺 First Home Grant 🇨🇦 FHSA

Rent vs Buy Calculator

Compare the total financial cost of renting versus buying over a chosen time horizon. Accounts for mortgage payments, property tax, maintenance, rent increases, and home appreciation.

Quick Answer

Break-even: typically 3–7 years in most cities. Price-to-rent ratio above 20 favors renting short-term. US average price-to-rent ratio: ~17 (2026). London: ~30. Sydney: ~26. The longer you stay, the more buying tends to win — due to equity accumulation and fixed mortgage payments vs rising rent.

Home Price ($)

Down Payment (%)

Mortgage Rate (%)

Property Tax Rate (% /yr)

Monthly Rent ($)

Annual Rent Increase (%)

Home Appreciation (%/yr)

Time Horizon (Years)

First-Home Buyer Programs by Country

Country / Program	Benefit	Status
🇬🇧 UK — First Homes	30–50% discount on new builds for key workers	Active (replaced Help to Buy 2023)
🇦🇺 First Home Guarantee	Govt guarantees 15% — no LMI needed	Active (35,000 places/year)
🇦🇺 First Home Owner Grant	$10,000–$30,000 cash grant (state-specific)	Active — varies by state
🇨🇦 First Home Savings Account	Tax-deductible contributions, tax-free growth, $40K lifetime	Active since 2023
🇺🇸 First-Time Homebuyer Credit	Tax credits up to $10K proposed but not passed (2026)	Proposed — not law
🇸🇬 CPF Housing Grant	S$5,000–S$80,000 CPF grant for HDB flat purchases	Active

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Down payment →

3.5% FHA vs 5% UK vs CMHC

Refinance calculator →

When a new rate beats the old one

PMI calculator →

US PMI, Canada CMHC, Australia LMI

Property tax →

US mill rates, UK Council Tax, AU land tax

Debt-to-income →

US 43%, UK affordability, Canada GDS/TDS

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APA

WorldCalculators.org. (n.d.). Rent vs Buy Calculator — 5-Year Cost Comparison. https://worldcalculators.org/calculators/rent-vs-buy/

MLA

“Rent vs Buy Calculator — 5-Year Cost Comparison.” WorldCalculators.org, worldcalculators.org/calculators/rent-vs-buy/.

BibTeX

@misc{worldcalculatorscalculatorsrentvsbuy,
  title        = {Rent vs Buy Calculator — 5-Year Cost Comparison},
  author       = {{WorldCalculators.org}},
  year         = {n.d.},
  howpublished = {\url{https://worldcalculators.org/calculators/rent-vs-buy/}}
}

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