Buy vs rent
Owning costs interest, maintenance and stamp duty, but you keep any growth in value. Renting costs the rent. This sets the two side by side over the years you plan to stay.
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Result
Worked exampleOver 5 years, buying costs less by
$410,257
Net cost of owning -$110,257; of renting $300,000
Monthly instalment
$5,399
$1,350,000 over 25 years at 1.5%
Loan repaid in that time
$231,104
Kept as equity, so not counted as a cost
| Buyer's stamp duty | $59,600 |
|---|---|
| Interest over 5 years | $92,836 |
| Maintenance fees | $24,000 |
| Less growth in value at 3% a year | -$286,693 |
| Net cost of owning | -$110,257 |
| Rent over 5 years | $300,000 |
- The downpayment and the loan repaid stay yours as equity, so they are not costs here. This leaves out what the downpayment could have earned elsewhere, the costs of selling, ABSD, property tax and any rental income.
A planning aid, not advice. It uses the rules shown below and the figures you enter. Banks, IRAS and CPF Board decide the actual figures for your case.
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See exactly what would be sent
What you entered: Price: $1,800,000 Downpayment: 25% Interest rate: 1.5% Loan tenure: 25 years Maintenance fees, a month: $400 Growth in value: 3% Rent, a month: $5,000 Years you plan to stay: 5 years The results: Cheaper: Buying By: $410,257 Net cost of owning: -$110,257 Rent: $300,000
The rules behind the numbers
Each table shows where the rule comes from and when we last checked it against that source. Rules change: check the source before you commit.
How buying and renting are compared
| Rule | Figure used |
|---|---|
| Net cost of owning | Buyer's stamp duty, interest and maintenance fees, less the growth in value |
| Not counted as costs | The downpayment and the loan repaid, which stay yours |
| Left out | What the downpayment could earn elsewhere, the costs of selling, ABSD, property tax and rental income |
- A comparison method, not a rule. The rates and growth are the figures you enter.
Buyer's stamp duty
| Purchase price or market value | Residential |
|---|---|
| First $180,000 | 1% |
| Next $180,000 | 2% |
| Next $640,000 | 3% |
| Next $500,000 | 4% |
| Next $1,500,000 | 5% |
| Remaining amount | 6% |
Worked out band by band on the purchase price or the market value, whichever is higher, and rounded down to the dollar.
- Source: IRAS: Buyer's Stamp Duty (BSD). Last checked against this source on 27 September 2026.
Planning figures
| Rule | Figure used |
|---|---|
| Interest rate | 1.5% a year |
| Loan tenure | 25 years |
These are our own planning figures, not a bank quote and not a rule. Banks set their own rates; use the rate you are offered.
- Our planning figures, last set on 16 August 2026.
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