🏠 Property Tool

Rent vs Buy Calculator

Compare the true cost of renting versus buying a home over time. Built with real African mortgage rates, property appreciation data, and rental market benchmarks.

⚙️ Your Situation
🏠 If You Buy
South Africa avg ~11.75%
Historical avg: SA 5–7%, NG 8–12%, KE 6–9%
% of home value per year
Transfer duty + legal + agent fees
🔑 If You Rent
Historical avg: SA 6–8%, NG 10–15%
If renting, you could invest your down payment. What return could you get? (SA money market ~9%, NG fixed deposit ~17%)
🏠
Result
...

🏠 Buying Total Cost

Down payment—
Buying costs—
Mortgage payments—
Maintenance & rates—
Less: Home equity—
Net cost to own—

🔑 Renting Total Cost

Total rent paid—
Insurance—
Less: Investment gains—
Net cost to rent—
Cumulative Cost Comparison by Year
Buying
Renting
🤖 AfroTools AI Insight

🌍 African Market Context

In most African cities, buying beats renting over 7+ years due to high rent inflation (8–15%/year), strong property appreciation, and the wealth-building effect of equity.

However, high mortgage rates (Nigeria 18–26%, Ghana 28%) make buying very expensive in the short term. If you plan to move within 3 years, renting is almost always cheaper.

South Africa, Egypt and Morocco have more moderate mortgage rates (10–14%) where the break-even point is typically 4–6 years.

❓ Common Questions

When does buying make more sense? +
Buying makes sense when: you plan to stay 5+ years, you have a stable income, local mortgage rates are below 15%, and rent inflation is high (above 8%/year). In SA, Kenya and Egypt this threshold is often 4–6 years.
When should I keep renting? +
Keep renting if: you may move within 3 years, you're in a city with very high mortgage rates (Nigeria, Ghana), your down payment capital can earn returns above the home's appreciation rate, or you need flexibility for career/family reasons.
What is the "break-even" point? +
The break-even point is the year at which total buying costs become lower than total renting costs. Before this point, renting is cheaper. After it, owning is cheaper. This tool shows you that point on the timeline.
Does this account for home equity? +
Yes. The calculator subtracts your estimated home equity (appreciated home value minus remaining mortgage balance) from buying costs, so you see the real net cost of owning, not just the payments made.