Buy a home, investment or rent? (AU)

My numbers go very far in the other direction. They're completely neglecting the compounding of the interest offsetting the loan, plus using interest rates that are higher than what is currently available.

I get the feeling these guys have a vested interest in convincing others that investment properties are the "way to go".

% Interest Rate P/A: 0.05 % Growth P/A: 0.08 $ Initial Value: 600000 $ Initial Principle: 540000 $ Budget P/A: 50000

|Principle|Property Value|Monthly Budget|Monthly Interest|Additional Contribution :--|--:|--:|--:|--: Year 1| | | | | Jan|540000|600000|4246.575342|2293.150685|1953.424658 Feb|538046.5753|604076.7123|3835.616438|2063.740289|1771.876149 Mar|536274.6992|607783.9228|4246.575342|2277.330914|1969.244428 Apr|534305.4548|611913.5232|4109.589041|2195.775842|1913.8132 May|532391.6416|615937.0642|4246.575342|2260.841218|1985.734125 Jun|530405.9074|620122.0612|4109.589041|2179.750305|1929.838737 Jul|528476.0687|624199.5761|4246.575342|2244.213442|2002.3619 Aug|526473.7068|628440.713|4246.575342|2235.710262|2010.865081 Sep|524462.8417|632710.6663|4109.589041|2155.326747|1954.262294 Oct|522508.5794|636870.9556|4246.575342|2218.87205|2027.703293 Nov|520480.8761|641198.1884|4109.589041|2138.962505|1970.626536 Dec|518510.2496|645414.2861|4246.575342|2201.892841|2044.682502 Year 2|Net Position:|126904.0365| | | Jan|516465.5671|649799.5667|4246.575342|2193.209942|2053.3654 Feb|514412.2017|654214.6432|3835.616438|1973.087897|1862.528541 Mar|512549.6732|658229.5495|4246.575342|2176.580804|2069.994539 Apr|510479.6786|662701.9037|4109.589041|2097.861693|2011.727348 May|508467.9513|667059.3957|4246.575342|2159.247464|2087.327878 Jun|506380.6234|671591.7445|4109.589041|2081.016261|2028.572781 Jul|504352.0506|676007.6902|4246.575342|2141.768982|2104.80636 Aug|502247.2443|680600.8383|4246.575342|2132.830763|2113.744579 Sep|500133.4997|685225.1947|4109.589041|2055.343149|2054.245892 Oct|498079.2538|689730.785|4246.575342|2115.131078|2131.444265 Nov|495947.8095|694417.175|4109.589041|2038.141683|2071.447358 Dec|493876.3622|698983.2058|4246.575342|2097.283182|2149.292161 Year 3|Net Position:|205106.8436| | | Jan|491727.07|703732.4615|4246.575342|2088.156051|2158.419292 Feb|489568.6507|708513.9862|3835.616438|1877.797564|1957.818874 Mar|487610.8318|712862.1268|4246.575342|2070.676135|2175.899207 Apr|485434.9326|717705.6832|4109.589041|1994.938079|2114.650962 May|483320.2817|722424.8438|4246.575342|2052.455991|2194.119352 Jun|481126.1623|727333.3743|4109.589041|1977.230804|2132.358237 Jul|478993.8041|732115.8403|4246.575342|2034.083278|2212.492065 Aug|476781.312|737090.2164|4246.575342|2024.687763|2221.887579 Sep|474559.4244|742098.3911|4109.589041|1950.24421|2159.344831 Oct|472400.0796|746977.9421|4246.575342|2006.08253|2240.492813 Nov|470159.5868|752053.2991|4109.589041|1932.162685|2177.426356 Dec|467982.1604|756998.3071|4246.575342|1987.321503|2259.253839 Year 4|Net Position:|289016.1467| | | Jan|465722.9066|762141.7476|4246.575342|1977.727412|2268.847931 Feb|463454.0587|767320.1354|3835.616438|1777.632006|2057.984433 Mar|461396.0742|772029.1686|4246.575342|1959.353192|2287.222151 Apr|459108.8521|777274.7366|4109.589041|1886.748707|2222.840334 May|456886.0117|782385.5842|4246.575342|1940.200872|2306.374471 Jun|454579.6373|787701.5191|4109.589041|1868.135496|2241.453545 Jul|452338.1837|792880.9264|4246.575342|1920.888177|2325.687165 Aug|450012.4966|798268.1721|4246.575342|1911.011972|2335.563371 Sep|447676.9332|803692.0216|4109.589041|1839.768219|2269.820823 Oct|445407.1124|808976.5719|4246.575342|1891.454861|2355.120482 Nov|443051.9919|814473.1798|4109.589041|1820.76161|2288.827431 Dec|440763.1645|819828.6199|4246.575342|1871.733986|2374.841356 Year 5|Net Position:|379065.4555| | | Jan|438388.3231|825398.9623|4246.575342|1861.649043|2384.926299 Feb|436003.3968|831007.1525|3835.616438|1672.341796|2163.274642 Mar|433840.1222|836107.0321|4246.575342|1842.334765|2404.240577 Apr|431435.8816|841787.9785|4109.589041|1773.024171|2336.56487 May|429099.3167|847323.0227|4246.575342|1822.202578|2424.372765 Jun|426674.9439|853080.1764|4109.589041|1753.458674|2356.130367 Jul|424318.8136|858689.4707|4246.575342|1801.901811|2444.673531 Aug|421874.14|864523.854|4246.575342|1791.520321|2455.055022 Sep|419419.085|870397.879|4109.589041|1723.640075|2385.948966 Oct|417033.1361|876121.0432|4246.575342|1770.962633|2475.61271 Nov|414557.5233|882073.8656|4109.589041|1703.661055|2405.927986 Dec|412151.5954|887873.8034|4246.575342|1750.232802|2496.34254

/r/personalfinance Thread