I have never lived anywhere my rent would cover a mortgage on the same place. But if you’re comparing somebody without a deposit with another person who magically found a sum of money large enough to reduce repayments to the level of rent then you’re comparing apples with oranges.
Well not at the start. Of course if rents say $500 a week and lets say goes up $10- 20 a year.
The pl
Roperties value for that kind of rent return would be around 650k.
If you borrowed 600k after deposit your paying $735. Thats allowing $75 for water and rates per week.
So your saving $235 a week.
Now that figure goes down $10 - $20 a week, Lets average it to $15.
So your saving money for the first 15 yrs. And paying extra for the last 15 yrs.
Wouldnt that even out too paying the same amount POU?
We are also not factoring in putting extra money towards home loan which redices interest and wohld save more.
Ultimately after 30 yrs you have outlayed the same or more renting but own nothing.
Your comparing rent prices with house prices at the same time and locking that in as a figure your using to compare.
Even if houses stagnate for 5yrs they will rise again. Rent will rise. But the amount of mo ey and home loan repayment should remain equal unless of course interest rates rise.
