Steve, I'll take you up on that one! A lot of articles of late are suggesting that you are far better renting than buying your PPOR at the moment and that you will make a lot more money from doing so. The premise is that you can rent at around 3% yield on purchase price, but to buy would cost you around 7% in interest charges to the bank. Like "renting" it from the bank. Obviously, by renting you forego the capital gain... Now, if you rent at 3%, but also buy an IP so you get the benefits of leverage into a growth asset category PLUS the benefits of tax deductibility and negative gearing, then you can do well. The problem with buying a PPOR and paying 7% interest to a bank to do so is that this is all non-deductible. You'd be better off renting and buying some IPs. When your IPs accumulate enough net worth, then you can translate this net worth into a PPOR by selling and buying or maybe through moving into the prime IP or the one with the lowest LVR. BUT, this all assumes that the individual has the DISCIPLINE to buy an IP or 3 whilst continuing to rent. Or investing in another category significantly whilst renting. The primary benefit of buying a PPOR for most "battlers" is that it is in fact an enforced savings regime. It is a foolproof way of making them "pay themselves first" which is probably the single most important rule to wealth generation. If they rent, then the big risk is that the "saved" money is just being burnt on doodads and beer. Buying a PPOR gives them at least one asset, albeit one purchased entirely in after tax dollars. As always, just my 2c, Cheers, Michael.