The Rent versus Buy Comparator allows the user to compare their estimated financial position after 7 years of renting with their estimated financial position after 7 years of home loan repayments. In essence, it allows you to assess whether your net wealth will be greater or less if you buy a home versus continuing to rent.
This tool assumes that the individual who rents will invest the deposit they have saved to purchase their home. Similarly the other property purchase and home loan start up costs, such as stamp duty and loan establishment fees are also assumed to be invested. It also assumes that the renting party will make monthly deposits equivalent to their disposable income (the difference between the calculated monthly mortgage repayments and the provided monthly rental rate) as well as annual property maintenance costs and quarterly rates.
This tool is an estimation tool only should not be considered financial advice.