Compare these three scenarios: 1. Buy to live in 2. Buy to rent out 3. Buy to live in for a year, then rent out. See how your net worth stacks up over time.
The difference between the property's current value and your outstanding loan balance. Grows as the property appreciates and as you pay down the loan. Does not account for entry costs, cashflows, or potential selling costs.
Your equity in the property plus all cumulative cashflows — entry costs paid at settlement, ongoing holding costs (rates, insurance, maintenance), tax benefits, and rental income.
Your equity in the property plus all cumulative cashflows — entry costs paid at settlement, ongoing holding costs (rates, insurance, maintenance), tax benefits, and rental income.
The difference between the property's current value and your outstanding loan balance. Grows as the property appreciates and as you pay down the loan. Does not account for entry costs, cashflows, or potential selling costs.
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