Net Wealth Over Time
Buy pathRent path
Property equity (buy) vs invested capital (rent) · includes stamp duty, running costs, opportunity cost
Buy path: property grows at 5.0% p.a., running costs $8,000/yr. Rent path: rent grows at 3.0% p.a., deposit + stamp duty invested at 7.0% p.a. (your assumption). This model assumes property is held and the renter invests the annual ownership-minus-rent cost difference at year end. A negative portfolio represents a funding shortfall and is compounded at the same assumed return. Selling costs, investment fees, tax and other acquisition costs are excluded. Illustrative only — not financial advice. Consult a licensed financial planner.