Rent isn't always 'dead money'. Here's why
Owning your own home can give a welcome sense of security, but the jury is out on whether it's the best money move.
Owning a home offers a sense of security, but its financial pros and cons are debated. A mortgage requires a deposit, often 20%, which for an average loan of $730,720 in Australia in 2026 would be $182,680. Stamp duty, conveyancing, and other fees can add at least $206,000 to the initial cost. This means you might spend $1,037 per week more on a mortgage than rent in the early stages.
However, this gap tends to close as rents rise. Renting also allows your cash to potentially grow through investments, while homeowners lock their money into a property. Negative equity, where you owe more than your home is worth, is a risk, especially as homes become more expensive and uninsurable. Despite these risks, home ownership remains a secure option, particularly for retirement, and doesn't rule out property investing through rentvesting.
Written by urgent.news from ABC News AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
