Yield vs return: a Property Lab worked example
A worked example in the Property Lab: why a 3% rent yield, a home loan and a 10-year hold give very different results, and what would flip the verdict.
HomeRent vs Buy
A fair fight between two choices
Rent vs Buy and Affordability
First, how much home can your income and savings carry? Then, in which year would buying overtake renting? Move the sliders and watch the answer change. Works from a 30 lakh flat upwards, in seven currencies.
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How it works
A fair comparison
Same money, two paths
The buyer puts the down payment and buying costs into the home. The renter invests exactly that amount, and also invests whatever owning would have cost above the rent.
Counted at the end
The buyer’s worth is the sale price less selling cost less the loan left. The renter’s worth is the invested pot. Whoever has more wins that year.
It depends
On price growth, on what your savings could earn, and on how long you stay. Change them and see. Where buying never wins, the tool says so.
Starting values are placeholders (To be verified), not market data. Use your own rent, your lender’s rate and your own savings return. Not tax-aware.
Questions
About this tool
Does buying always win in the long run?
No. It often does when prices and rents keep rising and you stay long, but not always. If rent is low compared with the price, or prices stall, renting and investing can win. That is exactly what the chart is for.
Why does the affordability number sometimes say “savings”?
You need both an income to repay the loan and savings for the down payment. Whichever is smaller sets the limit.
Is my data stored?
Only if you press save, and then only in this browser. Nothing is sent to Holdengard.
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