Should I Buy a Property or Not?
A simple guide to help you decide what's right for you.
Should I Buy a Property or Not?
A simple guide to help you decide
what's right for you.
Renting vs Buying: Where Does Your Money Go Over 30 Years?
For many Australians, 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 If You Bought 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.
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.
If you are ready to explore your options, find out what grants, schemes, and support may be available to help you start your property ownership journey.
Watch the video above to see how renting compares with building ownership over time.
You may also like
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.
Renting vs Buying: Where Does Your Money Go Over 30 Years?
For many Australians, 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 If You Bought 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.
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.
If you are ready to explore your options, find out what grants, schemes, and support may be available to help you start your property ownership journey.
Watch the video above to see how renting compares with building ownership over time.
You may also like
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