Property Break-Even Holding Period Calculator

This calculator estimates how many years you need to hold a property in New Zealand for capital growth to cover the cost of buying and selling it, the floor below which a quick sale can lose money even in a rising market. Property is an expensive thing to trade. Buying carries legal and inspection costs, and selling carries the big one, real estate agent commission, plus marketing and legal again. Those transaction costs have to be earned back through capital growth before you are even, so someone who buys and sells within a year or two can find that, despite the price ticking up, the gain was swallowed by the costs of the deal. This tool makes that explicit. You enter the purchase price, your buying costs, the selling cost as a percentage of price, and the annual capital growth you expect, and it works out the total transaction cost and divides it by the dollar growth each year to give the break-even holding period. Use it as a reality check before buying with a short horizon, or when tempted to sell soon after buying. Note it compares transaction costs against growth only and ignores ongoing holding costs and the rent you would otherwise pay, so the true break-even against renting is longer. Estimate only, not advice.

Transaction costs versus growth only; excludes interest, rates, maintenance and rent forgone, so the true break-even versus renting is longer. Estimate only.