Price-to-rent ratio, rule of thumb
Home price ÷ annual rent. Example: 9,600,000 ÷ 400,000 = 24, rent for now.
One rule, six markets
Grownz runs the same rent versus buy check in India, the UAE, the UK, the US, Singapore and Australia: the price of a similar home divided by its annual rent. The rule of thumb is above 20 rent, below 15 buy, in between it depends. What differs by market is everything around the number.
What changes by market
- Transaction costs. Stamp duty, registration and agent fees range from a few percent to well over ten. They are paid up front and recovered slowly, which is why short stays rarely favour buying anywhere.
- Loan structure. EMIs in India, mortgages in the UK, US and Australia, home loans in Singapore. All split interest and principal the same way; tenure and rate resets differ.
- What the deposit could earn. The return you give up on the down payment depends on what pays out in your market. The planner counts that in passive income.
How to use the check
Enter your rent and the price of a comparable home on Housing. Read the ratio and the verdict. Then ask the two questions the ratio cannot: how long will you stay, and what would the deposit do otherwise. Scenario Lab lets you try both paths without saving either.
What the verdict is not
It is not a recommendation to buy or to rent. It is a filter, in the product's own words, that tells you which side the arithmetic starts on. Markets, rates and your own plans decide the rest.
