Should I Buy A Cheap Or Expensive Property?

Case study:
Tom has $500,000 to spend on an investment property. He decides to buy a property worth $300,000. Claire also has $500,000 to spend on an investment property. She decides to buy a property worth $500,000. Both Claire and Tom put down a 10% deposit. This means Tom puts down $30,000 and Claire puts down $50,000. Both Tom and Claire hold their properties for 20 years. Their properties both go up by an average of 5% per year over 20 years. At the end of the 20 years,​ Toms property is worth $792,000 and Claires property is worth $1,320,000. Claire is $528,000 better off than Tom, although she only put down an extra $20,000 of her own money. This is the power of compound growth and buying a more expensive property earlier in your journey*.

* This is not financial advice​ or relevant to your situation in any way.

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1. Where you are right now in terms of your property investing goals.
2. Where you want to be by the time you retire.
3. The roadblocks currently holding you back from achieving your goals and how to address them.
4. Your next action steps.

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