01 · Life fit
Start with time and change.
Compare likely years in the city, job and school changes, household growth, elder access, pets, commute, need to alter the home and willingness to manage repairs. A financially plausible option can still be operationally wrong.
- Expected tenure
- Relocation probability
- Space and access change
- Location dependence
- Control over alteration
- Time available for project management
02 · Buying
Separate cash flow from equity.
Model down payment, acquisition charges, loan APR, interest-rate reset, maintenance, property tax, insurance, repair reserve, association charges, capital tied up and exit costs. Principal repayment creates equity and should not be described as the same expense as interest.
- Use the lender's Key Facts Statement
- Stress-test rate and tenure changes
- Keep an emergency reserve after purchase
- Do not insert assumed appreciation as a ZX promise
03 · Renting
Price flexibility and repeated movement honestly.
Include deposit, rent, escalation, tenant maintenance, brokerage, moving and repeated fit-out costs. Also value flexibility, reduced capital lock-in and the risk of renewal, relocation or limited alterations.
04 · Building
Add land, time and delivery risk.
Building can provide the highest control over brief and future use. It also carries site due diligence, approval, design, construction, cash-flow, temporary living and handover responsibilities. Compare the complete project provision and timeline with a ready-property purchase.
Source record
Official sources reviewed
Links are provided for verification. Requirements and portals can change after the review date.