Newbie here: Property or shares?

[markmoustache1]

Hi all, I've recently turned 30 and thought it was time to start optimising my savings.

TLDR; is there a calculator out there that compares mortgage repayments (i.e. paying off interest to the bank on a big loan) vs saving for a bigger deposit? i.e. is there an optimal point, having saved x% of the deposit before buying a property?

I moved to a new city 3 years ago and started a new career, which I love and pays pretty well.
I've been investing in vanguard shares, i.e. a managed fund, but don't have a big portfolio yet.
I don't know much about shares though, so happy to be investing in a managed fund and these guys seem good.

Rent here (Melbourne, Australia) costs between 13-17k a year for a house share or a small apartment. This is for sure dead money, and I think i'd love to be saving that rather than giving it to someone else.

So an alternative is to buy my own apartment. I'd need to sell all my shares to do that.
To buy an apartment here near my work, either its a 1 bedroom shoebox for $300k+ or its 2 bedrooms and $500k+.

If I got a 2 bedroom one, I could rent the other room which would help mortgage repayments. Another option would be to wait until I find a long term girlfriend and buy a property with her.

But my question is - is there a calculator out there that compares mortgage repayments (i.e. paying off interest to the bank on a big loan) vs saving for a bigger deposit? i.e. is there an optimal point, having saved x% of the deposit before buying a property?

I've got a forecast of how much money i'll have from shares in x years, so I'd roughly know.

Thanks!

[nawhite]

The New York Times rent vs buy calculator takes investment gains and down payment into account. Just change the slider for down payment or investment returns as your crystal ball recommends. The problem is still telling what the future holds but something like this will help you compare apples to apples.

The newer less good one: https://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html

The older version of it that I can't find anymore was more useful because the most important variable is "how long will you stay in this house to break even" which is a slider in this version.

[kite]

The New York Times rent vs buy calculator takes investment gains and down payment into account. Just change the slider for down payment or investment returns as your crystal ball recommends. The problem is still telling what the future holds but something like this will help you compare apples to apples.

The newer less good one: https://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html

The older version of it that I can't find anymore was more useful because the most important variable is "how long will you stay in this house to break even" which is a slider in this version.

yes, yes, yes, yes, yes.