Rent vs. Buy Property Comparison

Run the numbers — which is better?

The Rent vs Buy Calculator weighs mortgage interest, the opportunity cost of the down payment and price growth to project which wins at 10 and 20 years. In tier-1 cities rent yields sit under 1.5% and price growth has slowed — renting and investing the difference can outperform buying; in smaller cities with yields above 3%, buying locks in housing costs. Enter city profile and price data for a quantified verdict.

Basic Parameters

30 yrs
20 yrs
25 yrs
30 yrs

Renting Parameters

Buying Parameters

Rent or buy?

Advantages of Buying

  • Potential for asset appreciation
  • Stable housing, no landlord risk
  • Freedom to renovate
  • School-district access (select cities)
  • Sense of belonging

Advantages of Renting

  • Capital stays liquid for other investments
  • Easy to relocate when jobs change
  • No exposure to falling prices
  • No property fees or repair costs
  • Potentially better lifestyle (prime locations)

Decision Advice

Buying vs renting has no universal answer. Weigh: 1) finances and cash flow; 2) local prices and rents; 3) your 5–10 year plans; 4) local policy; 5) risk appetite.

Frequently Asked Questions

Rent or buy — which wins?

Watch 3 variables: the local rent yield, mortgage rate and price growth. This calculator projects all three over 10/20 years.

Is renting cheaper in tier-1 cities?

Usually yes. In tier-1 cities the rent yield is under 1.5% and price growth has slowed, so renting plus investing the difference can beat buying over the long run.

Is buying cheaper in smaller cities?

Usually yes. With rent yields above 3% and stable prices, buying locks in housing costs and avoids rent hikes.

What is buying's biggest hidden cost?

1) Renovation (CNY 100–300K); 2) property fees (CNY 2–5/sqm/mo); 3) a future property tax (not yet levied but possible).

📚 Further Reading

Want to dig into the assumptions and math behind Rent vs Buy? Recommended reading:

📖
Rent vs buy over 10 years: 3 cities compared
Renting for 10 years vs buying with a mortgage — real data from three cities says renting may win in tier-1.
⏱ About 7 min read