Rent vs Buy — shop / factory calculator
Same owner-occupier model as the condo tool, tuned for commercial space: 80% LTV, 25-year tenure, no first-home stamp exemption. Default price growth is 1.5% p.a. — NAPIC does not publish a 6-year unit-price CAGR for shops or factories, so this is a conservative placeholder. Change any number.
Your numbers
Shop / factory defaults are pre-filled. Open a group to edit.
Property & rent
Loan
Owning costs
Growth, CPI vs opportunity cost
Wealth if the property is sold
Buyer = property value − remaining loan − selling cost. Renter = initial cash + invested monthly gaps, compounded at r.
Annual cash out
Ownership cash = instalment + service charge + assessment + quit rent + insurance + repairs. Rent inflates with CPI. The gap is what the renter invests.
Year-by-year ledger
Intermediate “buyer net worth if sold” uses the full 2.5% selling cost every year so the path is consistent.
Sensitivity heatmap — Buy − Rent at terminal year (RM ’000)
Rows are price growth. Columns are the renter’s opportunity cost. Copper outline is your current (g, r) pair. Teal = buying ahead; copper = renting + investing ahead.
How this is calculated
- Both sides start with the same cash: down payment + day-1 costs. There is no first-home stamp exemption on commercial property. The renter invests that stack at r from day one.
- Loan is a standard reducing-balance mortgage. Default instalment is about RM4,447/mth on RM800,000 at 4.5% / 25 years (80% LTV on RM1m).
- Each year the renter invests the annual gap (ownership cash − rent) at year-end, same convention as the condo calculator.
- Repairs start at year-1 and compound at repair inflation (default 3%). Service charge, assessment, quit rent, insurance and rent compound at CPI (default 2%).
- Buyer terminal wealth assumes a sale: value grows at g, minus remaining principal, minus selling cost. RPGT is treated as 0% for a citizen/PR from year 6. Do not use this for a year-3 flip. A company buyer has a different RPGT schedule.
- Default g = 1.5% is a conservative placeholder. NAPIC publishes house-price index growth, not a shop/factory unit-price CAGR. Industrial transaction value can jump on land and data-centre deals without lifting a typical shop’s PSF.
Occupier comparison only — you operate from owned space versus renting the same shop/factory. Not investment advice. Condo companion: Rent vs Buy KL calculator.
Companion calculator for Estate Market Pulse. Commercial owner-occupier comparison — identical operations, different balance sheet. Numbers are a model, not a prophecy.
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