How does the rent vs buy comparison work?

The tool simulates both paths month by month. Buying pays the deposit and acquisition tax upfront, then mortgage interest, principal and holding costs while the home grows in value; net cost is total cash out minus the equity you end with. Renting invests the deposit and tax you would have spent, pays growing rent, and net cost is total rent minus the investment gain. The lower net cost wins.

Does it include South Korean acquisition tax?

Yes. Buying applies the up-front acquisition tax (취득세) using the standard owner-occupier sliding scale of 1% to 3% plus the 10% local education surtax. This is a real cost of buying that the renter avoids and instead keeps invested, so it is central to a fair comparison.

What is wolse and how is it modelled here?

Wolse (월세) is the monthly-rent lease common in Korea, where you pay rent each month. The tool models this directly: monthly rent grows by your rent-inflation assumption each year. It does not model jeonse, the large refundable-deposit lease, which works very differently and is excluded here.

Why does the investment return matter so much?

If you rent, the deposit and acquisition tax you did not spend stay invested. The return you assume on that money is the opportunity cost of buying. A higher investment return makes renting more attractive, while strong property capital growth favours buying. Small changes in either assumption can flip the result.

Is this financial advice?

No. It is a simplified model to frame the trade-off. It ignores capital-gains tax, agent and registration fees, maintenance variability, jeonse leases, and your personal tax position. Treat the output as a starting point and seek professional advice for a real decision.

South Korea Rent vs Buy Calculator

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A South Korea rent vs buy calculator that compares the full financial picture of renting against buying over your chosen horizon — factoring in mortgage interest, acquisition tax, holding costs, capital growth, and the investment return on the deposit you keep if you rent.

How it works

The tool simulates both paths month by month and compares net cost (lower wins):

Buying pays the deposit and acquisition tax (취득세) upfront, then each month pays mortgage interest, principal and holding costs while the home grows at your capital-growth rate. Net cost = all cash out (including deposit) − the home equity you end with.
Renting invests the deposit plus acquisition tax you did not spend, pays monthly rent (wolse) that grows with rent inflation, and ends with an investment portfolio. Net cost = total rent paid − investment gain.

The acquisition tax uses the standard owner-occupier sliding scale (1%–3%) plus the 10% local education surtax.

Example and notes

Compare a ₩700,000,000 home (₩210,000,000 deposit, 4% mortgage, 3% growth) against ₩1,500,000/month rent over 10 years, with a 5% investment return on the deposit. The tool shows the cheaper path and the breakdown — acquisition tax, end equity, total rent, and the invested deposit — so you can test how sensitive the verdict is to your assumptions.

This is a simplified wolse model. It ignores jeonse leases, capital-gains tax, agent fees and your tax position, and is not financial advice. All figures are computed locally in your browser.