Why waiting usually costs more

While you wait, you are still paying rent, and that money is gone. Meanwhile prices tend to rise, so the deposit you need keeps moving. The home you buy later costs more, and you have fewer years left for it to grow before year 30.

That does not mean buying now is always right. If the monthly cost would stretch you, or your job or plans are uncertain, waiting can be the smarter call.

What this leaves out

It does not count what you could earn by investing your deposit, or the gap between rent and repayments, instead of buying. Some renters who invest that money consistently do well.

It also assumes prices and rents grow steadily every year. Real markets go up and down, and they differ by suburb and state.

How this is calculated

• Each choice is measured at year 30. Buying later means a higher price, a higher deposit and higher buying costs, all grown at your property price growth rate.
• Repayments are principal and interest over 30 years at the rate you enter, the same rate for every choice. If you buy later, some of the loan is still owed at year 30.
• Rent grows each year at the rate you enter and is paid until you buy. Owning costs start when you buy and grow each year at the rate you enter.
• Your position at year 30 is the home’s value, less the loan still owed, less every dollar paid out along the way. Lenders mortgage insurance, tax and investment returns on your savings are not included.