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WealthKaki provides educational information and general guidance. It does not replace professional financial advice. Please consult a licensed financial adviser before making major financial decisions.

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Buy vs Rent Calculator: Property vs ETFs

Compare buying a condo or HDB flat with renting and investing the difference in ETFs, after stamp duties, interest, maintenance, special levies, selling costs and CPF.

How the Buy vs Rent Calculator works

The question is not whether a home is a good investment. It is whether owning this home leaves you with more than renting a similar one and investing what you would otherwise have put into it. The calculator runs both paths side by side, month by month, from the same starting money and the same monthly budget.

  • If you buy, you pay the down payment, buyer’s stamp duty, any ABSD and legal fees upfront. Each month you pay the mortgage, maintenance or S&CC, and property tax, and you may face a one-off special levy. When you sell, you pay agent and legal fees, plus seller’s stamp duty if you sell within four years.
  • If you rent, the cash the buyer spent upfront goes into ETFs instead, and you pay rent. Whichever path costs less each month invests the difference.

The year-by-year table shows what each path would be worth if you sold at the end of that year, which is where the break-even year comes from.

Stamp duty is the cost of getting in

Buyer’s stamp duty is charged progressively, from 1% on the first $180,000 up to 6% above $3 million. Singapore Citizens pay no ABSD on a first home, but PRs pay 5% and foreigners 60%, and second homes attract 20% or more. None of it comes back when you sell.

PriceBuyer’s stamp dutyShare of price
$650,000$14,1002.2%
$1,200,000$32,6002.7%
$2,000,000$69,6003.5%

Leverage cuts both ways

A 25% down payment means a 1% move in the property price is a 4% move in your equity. That is why buying often wins over long periods when mortgage rates sit below the rental yield, and why a flat or falling market can leave a buyer behind a renter for a decade. Try the price-growth input at 0% and at 3% to see how much of the answer depends on it.

Costs most buy-vs-rent maths leaves out

Special levies. Condo owners pay into a sinking fund for major repairs. In older developments, when the fund runs dry, the management corporation can levy owners a one-off sum. Before buying a resale condo, ask for the current sinking fund balance and when major works were last done.

Current mortgage rates. Rates reprice after the lock-in period. The default here is a typical 2-year fixed rate, and it is worth rerunning the numbers a percentage point higher. If you are comparing an HDB loan with a bank loan for a flat, use the HDB loan calculator.

CPF. CPF used for housing stops earning the 2.5% OA rate and must be refunded to your OA, with accrued interest, when you sell. It is still your money, so the calculator counts it on both sides. What changes is that a renter’s CPF keeps earning interest in the OA.

This tool provides educational estimates only, not licensed financial or property advice. It uses IRAS stamp duty rates as of October 2026 and does not check loan eligibility, HDB rules, grants or resale levies. Verify figures with IRAS, HDB and your bank, and consult a licensed adviser before making property decisions.

Reviewed and maintained by Gokul

Builds WealthKaki calculators and maintains the Singapore CPF, HDB, SRS, tax, and insurance assumptions used across the site. About WealthKaki

Official references

HDBIRAS Stamp Duty

WealthKaki provides educational information and general guidance. It does not replace advice from a licensed financial adviser, tax professional, or legal professional. Read the full disclaimer.

Free: 2026 Singapore Financial Planning Checklist

A one-page checklist covering CPF, HDB, SRS, insurance, and retirement planning. Enter your email to get instant access and occasional financial tips.

Frequently Asked Questions

Is it better to rent or buy in Singapore?+

It depends on four numbers: how long you will own before selling, the mortgage rate compared with the rental yield, how fast prices grow, and what your down payment would earn invested instead. Stamp duty, legal fees and agent commission make buying expensive to get in and out of, so short holding periods usually favour renting. Over longer periods, cheap borrowing and leverage often favour buying. The calculator shows the year buying pulls ahead on your own numbers.

How does the calculator make the comparison fair?+

Both paths start with the same money and spend the same each month. The renter invests the cash the buyer would have spent on the down payment, stamp duty and legal fees. Whichever path has the lower monthly cost invests the difference in ETFs. CPF used for housing is refunded to your OA when you sell, so it counts as yours either way. If you rent, it stays in your OA earning 2.5%.

What is a special levy, and should I worry about it?+

Condo owners pay into a sinking fund for major repairs. When the fund runs short, often in older developments, the management corporation can charge owners a one-off special levy that can run into tens of thousands of dollars. Before buying a resale condo, ask for the current sinking fund balance and when major works were last done. Enter any expected levy to see its effect.

Does this include seller’s stamp duty?+

Yes. For homes bought on or after 4 July 2025, selling within four years incurs SSD of 16%, 12%, 8% or 4% of the sale price, depending on how long you held it. The calculator applies it automatically when your holding period is four years or less.

Home type

Fills in typical price, rent and running costs. Adjust to your own.

Buying

25% minimum on a first bank loan

Default is a typical 2-year fixed rate as of Sep 2026. Rates float after the lock-in

Owning costs

Owner-occupier rates. Much higher if you rent the unit out

Older condos can levy owners when the sinking fund runs short. Ask for the sinking fund balance before buying

Agent commission and legal fees when you sell

Renting and investing

Gross rental yield: 3.5%

After fund fees, e.g. a global index ETF

CPF used for the home

CPF you use for housing is refunded to your OA when you sell. If you rent, it stays in your OA earning 2.5%.

Buying leaves you ahead by

$192,492

after 10 years, counting sale costs. Buying pulls ahead from year 5.

If you buy

$849,075

Home worth $1,462,793, less the loan and selling costs, plus anything invested

If you rent and invest

$656,583

The upfront cash and any monthly saving invested at 6%, plus CPF kept in your OA

What buying costs

Upfront cash + CPF

$335,600

Buyer’s stamp duty

$32,600

ABSD

$0

Monthly instalment

$3,685

Interest over 10 years

$127,210

Maintenance, tax, levies

$54,000

Selling costs

$29,256

Rent paid instead

$459,888

If you sold at the end of each year

Net worth from this decision only, after sale costs and any SSD

YearHome valueBuyRent + investBuy − rent
1$1,224,000$132,822$363,559-$230,737
2$1,248,480$232,476$392,332-$159,856
3$1,273,450$335,036$421,951-$86,915
4$1,298,919$440,580$452,450-$11,870
5$1,324,897$549,187$483,864$65,323
6$1,351,395$606,880$516,228$90,652
7$1,378,423$665,636$549,581$116,055
8$1,405,991$725,475$583,964$141,511
9$1,434,111$786,416$619,418$166,998
10$1,462,793$849,075$656,583$192,492
Disclaimer: This calculator is for educational purposes only and is not financial advice. It assumes constant price growth, rent growth, ETF returns and mortgage rates, and uses IRAS stamp duty rates as of October 2026. It does not model loan eligibility (TDSR/MSR), HDB resale levies or grants, renovation, or tax on rental income. Property is a single leveraged asset: a few percentage points of price growth either way changes the answer. Consult a licensed adviser before making property decisions.