ILLUSTRATIVE EXAMPLE
Comparing two property purchase budgets
A lower purchase price does not always produce the lower total cash requirement. Compare the deposit, purchase costs, finance and ongoing costs together.
Published 2026-10-23 · LANDICATION · Educational content
Start with the same financing assumptions
This example compares two unnamed, hypothetical homes. Both use an 80% loan and an assumed 6% annual interest rate over 30 years, with principal-and-interest repayments. The rate is chosen for the example, not taken from a lender.
The purchase-cost budgets below are round-number assumptions covering duty and transaction costs together. They are not calculations of state duty, first-home benefits or actual conveyancing fees.
| Input or derived result | Home A | Home B |
|---|---|---|
| Assumed purchase price | $800,000 | $780,000 |
| Assumed purchase costs | $40,000 | $50,000 |
| Loan: 80% of purchase price | $640,000 | $624,000 |
| Price less loan (deposit) | $160,000 | $156,000 |
| Upfront cash: deposit + purchase costs | $200,000 | $206,000 |
| Monthly loan repayment, rounded | $3,837 | $3,741 |
| Assumed annual holding costs, excluding loan | $6,000 | $9,000 |
| Monthly loan + holding costs, rounded | $4,337 | $4,491 |
Read the trade-off
Home B costs $20,000 less to buy, but requires $6,000 more cash upfront under these assumptions. Its higher holding-cost budget also outweighs the smaller loan repayment. This is a comparison of the selected inputs, not a conclusion about which real property is better.
Repayment uses L × r ÷ (1 − (1 + r)⁻ⁿ), where L is the loan, r is 0.06 ÷ 12 and n is 360. Monthly ownership cost adds annual holding costs divided by 12. Figures are rounded only for display.
Repeat the exercise in Property Planner
Review each property’s purchase price, financing method and individual purchase-cost fields. Enter the actual duty or an appropriate estimate for the relevant state and buyer circumstances. Check loan terms and holding costs separately.
Compare the scenarios using the same assumptions where appropriate. Keep unavailable inputs blank until investigated. Saving, comparison size, additional scenarios and exports depend on membership.
- Confirm duty, fees and any concessions using the responsible authority and your conveyancer.
- Include a separate cash reserve in your own financial plan; this example does not fund unexpected repairs.
- A modelled repayment does not establish borrowing approval or household affordability.
Further checks
The official resources below can help you check current requirements. Links checked 2026-10-23.
Information is general and does not take account of your circumstances. Confirm current requirements, costs and site-specific issues with the responsible authority or appropriate adviser.
Continue with Property Planner.
Compare purchase costs, loan repayments and rental cash flow.
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