Rent vs Buy Comparison

Find out which option is better for you over the long term

🏠 Buying
Malaysian property avg ~3-5% p.a.
🏢 Renting
Typical 3-5% annual increase
If you invest the down payment instead

🏠 Cost of Buying

Down Payment-
Stamp Duty & Legal-
Total Loan Repayment-
Maintenance-
Property Value (end)-
Remaining Loan-
-
Net Cost of Buying

🏢 Cost of Renting

Total Rent Paid-
Investment Growth-
-
Net Cost of Renting

Rent or Buy: What to Consider

The rent-vs-buy decision depends on property prices, rental rates, how long you plan to stay, and the opportunity cost of your down payment.

When Buying Makes Sense

If you plan to stay long-term (7+ years), property appreciation outpaces your investment returns, and monthly mortgage payments are close to rental costs, buying often wins.

When Renting Makes Sense

If you need flexibility, property prices are high relative to rents, or you can earn higher returns investing your down payment elsewhere, renting can be more cost-effective.

Malaysian Context

Property in Malaysia has appreciated at roughly 3-5% annually over the past decade. Meanwhile, EPF dividends average 5.5% and equity markets 7-8%. Factor these into your decision.

Method, example & sources

Last updated 21 June 2026
Assumptions & worked example

The comparison models mortgage amortisation, down payment, property appreciation, maintenance, rent growth, and investment opportunity cost from the values entered. Change one assumption at a time to understand its effect.

Official checks

Educational estimate only. Known limitations: scenario model, not a forecast. It excludes some transaction costs, taxes, renovation, vacancy, insurance, and personal risk factors. Change the assumptions to test a range rather than relying on one result.