Should I Buy a Property
or Keep Renting?
A simple guide to help you decide what's right for you.
For many Australians, the decision between renting and buying is one of the biggest financial choices they will ever make. Both options come with advantages, trade-offs, and long-term consequences that can significantly impact your wealth and lifestyle.
Renting can provide flexibility, lower upfront costs, and the freedom to move as your circumstances change. Buying a home, on the other hand, can offer stability, greater control over your living environment, and the opportunity to build equity over time.
This is where the debate usually begins.
Some people say rent is wasted money because you are paying to live in a property you will never own. Others argue that buying also comes with major costs, especially mortgage interest, which can add up significantly over the life of a loan.
So, what is actually better over the long term?
Rather than relying on opinions or assumptions, one of the best ways to answer that question is to look at what has happened in the real world. By backtesting renting versus paying a mortgage over the past 30 years, we can compare the true cost of each option and see how the outcomes differ over time.
In this article and accompanying video, we break down the numbers to explore where the money went, what was gained along the way, and what each path could mean for someone looking to build long-term financial security.
Watch the video below to see the 30-year comparison.
Renting vs Buying: Where Does Your Money Go Over 30 Years?
Renting is part of everyday life. It offers flexibility, fewer upfront costs, and the ability to move when circumstances change.
But when you step back and look at renting over a longer period of time, the real question becomes:
Where is all that money going?
The Cost of Renting Over 30 Years
Over the last 30 years, an average renter in New South Wales could have paid around $645,000 in rent.
That is more than half a million dollars.
And after 30 years of paying rent, what do they own?
Nothing.
Rent helps you secure a place to live today, but it does not create ownership. Once the payment is made, it is gone. Over time, those weekly or monthly payments can add up to a very large amount without leaving you with a property asset at the end.
What Happens When You Buy Instead?
Now compare that with buying a home.
Buying property can feel intimidating at first because there are bigger commitments involved. There may be a deposit, loan repayments, fees, interest, and ongoing responsibilities.
But the important difference is this:
Your money is going towards something that can become yours.
A mortgage is still a cost, but it can also help you build ownership over time. Instead of only paying to live somewhere, you are gradually working towards owning an asset.
In the example from the video, a home bought around 30 years ago for approximately $155,000 could now be worth around $900,000, depending on the location, property condition, and market performance.
A renter may pay for decades and still need to keep renting. A buyer may spend those same years paying down a home loan and building equity.
Rent vs Mortgage: What Does the Backtest Show?
The real question is not simply whether rent is wasted money or whether mortgage interest is expensive.
The better question is:
After 30 years, which option leaves you in a stronger position?
When you compare renting versus paying a mortgage over a longer period, you are not only looking at monthly payments. You are looking at the outcome.
You are looking at whether ownership was created, whether equity was built, and what position someone may be in after 30 years.
That is why backtesting gives a clearer picture.
Looking at the Next 30 Years
Now think about the future.
Buying a home today can seem expensive, and many people feel like it is out of reach but rent usually goes up over time too.
In the video example, someone who buys a home for around $900,000 today could pay about $2.2 million in mortgage repayments over the next 30 years.
That sounds like a lot of money.
However, if rent keeps increasing over time, someone renting for those same 30 years could end up paying around $2.7 million in rent.
The key difference is what you have at the end.
After 30 years of renting, you may have spent a lot of money but still not own the property.
After 30 years of paying off a home loan, you could own the home and benefit from any increase in its value over time.
Buying Is Not a Shortcut to Wealth
To be clear, buying a home is not a get-rich-quick strategy.
Property values can change. Interest rates can move. Every buyer’s financial situation is different. There are also responsibilities that come with owning a home.
But for many Australians, property ownership is not just about investment.
It is about stability.
It is about having a place to call your own.
It is about knowing that your payments are helping you move towards ownership instead of only covering rent.
Why It Is Worth Exploring Your Options
Many people assume they cannot buy a home because prices are too high or because they do not have a large deposit.
But before deciding that home ownership is impossible, it is worth understanding what support may be available.
Depending on your situation, there may be government grants, first home buyer schemes, low-deposit options, stamp duty concessions, or other support that could help you get started.
You may not need to have everything figured out today.
The first step is simply knowing your options.
Why It Is Worth Exploring Your Options
Renting can offer flexibility.
Owning can offer stability.
Both options have costs, but the long-term outcome can be very different.
When you backtest renting versus paying a mortgage over 30 years, the question becomes clearer:
Do you want your money to only pay for where you live today, or help you build something you could own in the future?
You may also like
Article 2
Should you buy your primary place of residence first, or start investing first through rentvesting?
This article compares both property paths and explains why the right strategy depends on your goals, finances, lifestyle, and long-term plans.
Discover grants and incentives that could help you buy your first home sooner.
Learn the home-buying process with confidence and avoid costly mistakes.
Get expert finance solutions tailored to your property goals.
Should I Buy a Property or Keep Renting?
A simple guide to help you decide what's right for you.
For many Australians, the decision between renting and buying is one of the biggest financial choices they will ever make. Both options come with advantages, trade-offs, and long-term consequences that can significantly impact your wealth and lifestyle.
Renting can provide flexibility, lower upfront costs, and the freedom to move as your circumstances change. Buying a home, on the other hand, can offer stability, greater control over your living environment, and the opportunity to build equity over time.
This is where the debate usually begins.
Some people say rent is wasted money because you are paying to live in a property you will never own. Others argue that buying also comes with major costs, especially mortgage interest, which can add up significantly over the life of a loan.
So, what is actually better over the long term?
Rather than relying on opinions or assumptions, one of the best ways to answer that question is to look at what has happened in the real world. By backtesting renting versus paying a mortgage over the past 30 years, we can compare the true cost of each option and see how the outcomes differ over time.
In this article and accompanying video, we break down the numbers to explore where the money went, what was gained along the way, and what each path could mean for someone looking to build long-term financial security.
Watch the video below to see the 30-year comparison.
Renting vs Buying: Where Does Your Money Go Over 30 Years?
Renting is part of everyday life. It offers flexibility, fewer upfront costs, and the ability to move when circumstances change.
But when you step back and look at renting over a longer period of time, the real question becomes:
Where is all that money going?
The Cost of Renting Over 30 Years
Over the last 30 years, an average renter in New South Wales could have paid around $645,000 in rent.
That is more than half a million dollars.
And after 30 years of paying rent, what do they own?
Nothing.
Rent helps you secure a place to live today, but it does not create ownership. Once the payment is made, it is gone. Over time, those weekly or monthly payments can add up to a very large amount without leaving you with a property asset at the end.
What Happens When You Buy Instead?
Now compare that with buying a home.
Buying property can feel intimidating at first because there are bigger commitments involved. There may be a deposit, loan repayments, fees, interest, and ongoing responsibilities.
But the important difference is this:
Your money is going towards something that can become yours.
A mortgage is still a cost, but it can also help you build ownership over time. Instead of only paying to live somewhere, you are gradually working towards owning an asset.
In the example from the video, a home bought around 30 years ago for approximately $155,000 could now be worth around $900,000, depending on the location, property condition, and market performance.
A renter may pay for decades and still need to keep renting. A buyer may spend those same years paying down a home loan and building equity.
Rent vs Mortgage: What Does the Backtest Show?
The real question is not simply whether rent is wasted money or whether mortgage interest is expensive.
The better question is:
After 30 years, which option leaves you in a stronger position?
When you compare renting versus paying a mortgage over a longer period, you are not only looking at monthly payments. You are looking at the outcome.
You are looking at whether ownership was created, whether equity was built, and what position someone may be in after 30 years.
That is why backtesting gives a clearer picture.
Looking at the Next 30 Years
Now think about the future.
Buying a home today can seem expensive, and many people feel like it is out of reach but rent usually goes up over time too.
In the video example, someone who buys a home for around $900,000 today could pay about $2.2 million in mortgage repayments over the next 30 years.
That sounds like a lot of money.
However, if rent keeps increasing over time, someone renting for those same 30 years could end up paying around $2.7 million in rent.
The key difference is what you have at the end.
After 30 years of renting, you may have spent a lot of money but still not own the property.
After 30 years of paying off a home loan, you could own the home and benefit from any increase in its value over time.
Buying Is Not a Shortcut to Wealth
To be clear, buying a home is not a get-rich-quick strategy.
Property values can change. Interest rates can move. Every buyer’s financial situation is different. There are also responsibilities that come with owning a home.
But for many Australians, property ownership is not just about investment.
It is about stability.
It is about having a place to call your own.
It is about knowing that your payments are helping you move towards ownership instead of only covering rent.
Why It Is Worth Exploring Your Options
Many people assume they cannot buy a home because prices are too high or because they do not have a large deposit.
But before deciding that home ownership is impossible, it is worth understanding what support may be available.
Depending on your situation, there may be government grants, first home buyer schemes, low-deposit options, stamp duty concessions, or other support that could help you get started.
You may not need to have everything figured out today.
The first step is simply knowing your options.
Why It Is Worth Exploring Your Options
Renting can offer flexibility.
Owning can offer stability.
Both options have costs, but the long-term outcome can be very different.
When you backtest renting versus paying a mortgage over 30 years, the question becomes clearer:
Do you want your money to only pay for where you live today, or help you build something you could own in the future?
You may also like
Article 2
Should you buy your primary place of residence first, or start investing first through rentvesting?
This article compares both property paths and explains why the right strategy depends on your goals, finances, lifestyle, and long-term plans.
Discover grants and incentives that could help you buy your first home sooner.
Learn the home-buying process with confidence and avoid costly mistakes.
Get expert finance solutions tailored to your property goals.
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