It's not universally better to rent or buy in the military; it depends on your PCS (Permanent Change of Station) timeline, financial goals, and tolerance for being a landlord, with buying often building equity (potentially using BAH to pay your own mortgage, not someone else's) and renting offering flexibility, especially for short assignments. Buying can be great for long-term wealth if you rent it out when you move, but frequent moves make it challenging, making renting simpler if you value low hassle and flexibility.
The 30% rent rule is a guideline suggesting you shouldn't spend more than 30% of your gross or net income on rent to ensure affordability, allowing funds for other essentials like groceries and transport, and is often used by property managers to assess applicants; however, in expensive markets, it's sometimes stretched to 40-50%, or considered outdated by some, but it remains a common benchmark for housing affordability and "rental stress".
Renting offers flexibility and room to grow, while buying provides long-term stability and potential financial benefits. Consider your personal circumstances and financial goals to make the best decision for you.
At the end of the day, renting vs buying in Australia in 2025 isn't about which option is universally better—it's about what's right for you. Renting can be the smart play if you value flexibility or need time to save. Buying makes sense if you're financially ready and want to start building equity.
Using this free income calculator, the approximate income you need to buy a $500,000 home, assuming you need a $400,000 loan, is $77,000 gross per year, excluding superannuation.
The 2% property rule is a real estate investing guideline where you check if a rental property's monthly rent is at least 2% of its purchase price, indicating strong potential for positive cash flow and profitability; you calculate this by dividing the monthly rent by the property's total price and multiplying by 100, aiming for 2% or more to deem it a good deal, though it's a simplified metric, notes Rentana and Abacus Finance.
In fact, at the end of the five years, if you invest $1,000 per month you would have $83,156.62 in your investment account, according to the SIP calculator (assuming a yearly rate of return of 11.97% and quarterly compounding).
While backpacking Australia doesn't have to be ridiculously expensive, having around $5000 is a really good safety net that will cover you for at least a month of accommodation and basic living expenses while you get your feet.
Yes, building a house for $600k is achievable, especially with house and land packages or standard builder-grade homes in many regions, though it depends heavily on location, size, land costs, and inclusions, with some builders offering modern designs within this budget, often for 3-4 bedroom homes. Expect modest finishes and potentially smaller footprints in high-cost areas, while in more affordable locations, $600k could get you a larger home with better features, but luxury custom builds often exceed this, notes.
If you make $100,000 a year living in Australia, you will be taxed $24,967. That means that your net pay will be $75,033 per year, or $6,253 per month. Your average tax rate is 25.0% and your marginal tax rate is 34.5%.
Rental yield expectations vary by property type and location. In Sydney overall, a good gross rental yield is typically considered 3.2%+ for houses and 4.5%+ for units. On the Northern Beaches, recent data shows: Houses – average gross yield around 2.6%, with high-demand pockets achieving closer to 3% or more.
Follow the 30% rule
The 30% rule means keeping your rent below 30% of your total income. For a renter in Sydney who is making an average annual salary, that would mean spending approximately $580 per week on rent.
The cost for building a 4 bedroom house in Australia in 2025 varies widely, but a safe range is between $400,000 and $900,000 depending on where and how you build. While it may feel daunting, the right finance partner can make the process achievable.
Suppose the purchase price of your home is $600,000. You can calculate your minimum down payment by adding 2 amounts. The first amount is 5% of the first $500,000, which is equal to $25,000. The second amount is 10% of the remaining balance of $100,000, which is equal to $10,000.
In Australia, the middle-class income range is generally considered to be between 75% to 200% of the median income, which translates roughly to $48,000 to $130,000 annually for individuals, though figures vary by definition (personal vs. household) and year, with some placing the core middle at $90k-$140k household income, supporting a lifestyle of home ownership and family activities, but facing rising costs.
The average Australian full-time worker is now earning more than $2000 a week for the first time in history. New figures from the Australian Bureau of Statistics (ABS) show the average ordinary full-time weekly earnings for adults hit $2011.40 before tax in May.
A $1 million retirement fund in Australia can last anywhere from under 20 years to over 30 years, heavily depending on your annual spending, investment returns, and whether you receive the Age Pension, with $40,000-$50,000/year lasting longer (30+ years) and higher spending (e.g., $60,000+/year) depleting it much faster (20-25 years), while combining with the Age Pension significantly extends its longevity.
Investing $1,000 in Coca-Cola (KO) stock 20 years ago (around early 2006) would have grown to roughly $6,000 to $8,000 by late 2025, assuming reinvested dividends, but it significantly underperformed the S&P 500 index, which would have turned $1,000 into about $20,000 over the same period, highlighting that while Coca-Cola offers stability, diversification and broader market index funds often yield better long-term returns.
The 7-3-2 rule is a wealth-building strategy highlighting compounding's power, suggesting it takes roughly 7 years to save your first significant amount (like a crore), then 3 years for the second, and only 2 years for the third, by increasing contributions and leveraging exponential growth as your money compounds faster. It emphasizes discipline in the initial phase, then accelerating savings as returns kick in, making later wealth accumulation quicker and more dramatic.
How To Turn $1,000 Into $10,000 in a Month
Many locations and individual properties haven't – and quite possibly never will – double in value every ten years. That doesn't mean that your home won't enjoy significant gains in value over time.
AB 1482:
Depending on the market and investment strategy, some real estate investors might consider an ROI between 5% and 10% good for rental properties, while others aim for a higher ROI of 12% or more.
It's often cheaper to build a new home in Australia if you're a first-home buyer due to significant government grants (like stamp duty exemptions) and long-term savings from energy efficiency/fewer repairs, while buying an established home can be cheaper upfront, especially in established areas where land is expensive, though it comes with higher initial repair costs and less customisation. The final cost depends heavily on location (land value), house size, materials, and the quality of finishes, with building costs generally ranging from $1,500 to $4,000+ per square metre plus land.