Strategy · Cashflow
Buy vs Rent Breakeven Simulator
Compare full ownership cost — stamp duty, legal, mortgage, mgmt fee, Rates and Govt Rent — against a rising-rent stream, net of projected property appreciation.
Last updated · June 2026
Property
Scenario
Result
Stamp duty (AVD)
HK$240.0K
Legal fees
HK$8.0K
Down payment
HK$2.40M
Monthly mortgage
HK$27.1K
Total buy cost (10y)
HK$6.35M
Total rent cost (10y)
HK$2.89M
Projected sale value
HK$9.75M
Net equity (pre-tax)
HK$4.15M
Breakeven year
Year 1
Frequently asked
- What does 'breakeven year' mean here?
- It is the first year in which buying becomes cheaper than renting on a cumulative basis, accounting for your down payment, stamp duty, legal fees, mortgage payments, management fee, Rates and Government Rent on the buy side — and the rising rent stream on the rent side — net of the projected property value at that point.
- Are taxes and fees included on the buy side?
- Yes. Stamp duty uses the live IRD AVD Scale 2 brackets. Legal fees are estimated at 0.1% of price (minimum HK$8,000) as a reasonable solicitor benchmark. Mortgage uses standard amortization; management fee and Rates/Govt Rent are user-supplied monthly costs.
- What rent inflation assumption is sensible?
- Hong Kong residential rent CPI has averaged roughly 1–3% per year over the past decade, with sharper short-term swings. Use 2% as a neutral baseline and stress-test ±2 percentage points to see how sensitive your decision is.
- Does this assume I sell at the holding horizon?
- We display the projected sale value and your net equity at the end of the holding period, but the breakeven calculation itself is cumulative cash outflow versus equivalent rent — it surfaces when the buy decision starts to dominate, even if you ultimately hold longer.