scenario model

Property upgrade analysis

Should you buy now with today's borrowing power, or wait 5 years for a higher income and invest your cash in the meantime? Existing property retained as investment in both scenarios.

Option A — buy now net worth (yr 5)
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Option B — wait & invest net worth (yr 5)
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Your situation
Current position (year 0)
Existing property value $1.30M
Existing loan balance $700k
Offset / redraw balance $700k
Cash savings $680k
Today's borrowing capacity $950k
Annual savings surplus $68k
Future position (year 5)
Year 5 borrowing capacity $2.3M
Market assumptions
Property growth rate 4.0%
Investment return (net) 4.5%
Derived values (Option A — buy now)
Max purchase price today —
Stamp duty (~5.5%) —
New PPOR loan —
Net worth trajectory
Option A Option B
Tipping points
Net worth crossover
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Property growth where A beats B
Purchasing power limit
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Property growth that prices you out
Option B max purchase (yr 5)
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Sensitivity: growth rate to price you out
NW tipping point PP tipping point
This is an analytical model for illustrative purposes only — not personal financial advice. Consult a licensed financial planner before making property or investment decisions. Model assumes interest-only on new PPOR loan, existing property retained as IP, VIC stamp duty (~5.5%), and does not account for rental income, negative gearing, CGT, or transaction costs beyond stamp duty.