How does the calculator decide rent versus buy?

It computes the net cost of each path over your holding period. Buying nets your upfront and ongoing costs against the equity you recover when you sell. Renting nets total rent paid against the investment growth you earn on the cash a buyer would tie up. The lower net cost wins.

Why include investment return on the down payment?

A renter keeps the large down payment and upfront costs invested instead of locking them into property. Ignoring the growth that cash earns would unfairly favour buying. The tool grows that sum at your chosen return and credits it against the cost of renting.

What ownership costs should I include?

In Hong Kong, budget for government rates and rent, building management fees and maintenance. Enter the monthly total in the ownership costs field. These are real recurring costs an owner pays that a renter usually does not, so they matter to the comparison.

How sensitive is the result to appreciation?

Very. Hong Kong property has been volatile, with strong long-run gains but sharp corrections. Because the sale proceeds drive the buying side, a small change in the appreciation rate can flip the answer. Try a few scenarios rather than trusting a single number.

Does this guarantee the cheaper option?

No. It is an estimate based on your assumptions about rates, rent and appreciation, none of which are certain. Use it to understand the trade-offs and break-even sensitivities, not as a guaranteed forecast of which choice will be cheaper.

Hong Kong Rent vs Buy Calculator

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A Hong Kong rent vs buy calculator that models the full financial picture over your holding period. It accounts for the mortgage, stamp duty, ongoing ownership costs, property appreciation, rent growth, and the crucial opportunity cost of the cash a buyer ties up — then tells you which path is cheaper.

How it works

The tool computes a net cost for each option and compares them.

Buying:

upfront    = down payment + stamp duty + legal fees
outflows   = (mortgage P&I + ownership costs) over the hold period
sale       = price * (1 + appreciation)^years - remaining loan - ~1% sale cost
buy cost   = upfront + outflows - sale

Renting:

total rent = rent compounded by annual growth over the hold period
invest gain= upfront sum grown at your investment return
rent cost  = total rent - invest gain

The lower net cost wins. Crediting the renter with investment growth on the money a buyer would lock up is what makes the comparison fair.

Example and notes

An 8,000,000 HKD flat at 70% LTV, 4% over 30 years, versus 22,000 HKD/month rent, held 10 years with 2% appreciation and a 4% investment return: the tool weighs the owner’s recovered equity against the renter’s invested savings and reports which is cheaper and by how much.

The result is highly sensitive to the appreciation and rent growth assumptions — try several. All figures are calculated locally in your browser.