The two places
Rough numbers are fine — drag a slider or type an exact figure.
Cheaper home price
The older / cheaper place — the one you'd keep spare cash on.
Pricier home price
The newer / pricier place you'd stretch for.
Total cash you have
Deposit plus anything spare — all the cash you could put in.
THE LOAN
Mortgage rate
Today's rate — same on both, so it's a fair comparison.
Loan term
ON THE MONEY ALONE
On the money, these are close
Cash kept by going cheaper
$70,000
Extra to repay if you stretch
$233 /fn
Going cheaper keeps $70,000 liquid; stretching costs about $505/month more and $101,950 extra interest over 30 years. Those roughly cancel — so the money isn't what decides this. The land and location are.
CHEAPER + KEEP CASH
Loan
$520,000
Repayment
$1,516/fn
Cash left over
$70,000
STRETCH FOR PRICIER
Loan
$600,000
Repayment
$1,750/fn
Extra interest over 30 yrs
$101,950
How much you could spend on the cheaper house
Buy the $650,000 home and you could pour up to $251,950 into it — renovations, insulation, a new bathroom — and still be no worse off financially than buying the $750,000 place. That's the cash you kept plus the repayments you saved, over 30 years.
What this doesn't decide (and it's the bigger half)
- Land & section. A bigger section usually wins on long-term capital growth — often the single biggest factor, and one no calculator can value. If the older house sits on more land, that can outweigh everything here.
- Condition risk. A 1950s build can hide asbestos, single glazing and no insulation — inspection findings, not knowable upfront. Get a builder's report before you weigh the money.
- New builds aren't maintenance-free. Cesspits, TPR valves, heat-pump filters, cylinder anodes — "new" fades the day you settle. Warm and dry, yes; zero upkeep, no.
- Location & flood zone. Area and hazard risk dominate resale and insurance. Check the LIM and the flood maps for both.