Why this wealth manager, 47, RENTS a home in Sydney being able to afford ownership – and says it’s time to ‘re-think the Australian dream’
At a time when homeownership is still widely seen as the ultimate financial milestone, Sydney wealth manager Mark Welch has made a decision that goes against the grain.
When it comes to homeownership, he’s adamant that for most Australians, a lot of the time the numbers just don’t add up.
Mark, 47, who lives in a three-bedroom terrace in Surry Hills with his partner and child, is not anti-property, however.
In fact, he was quick to point out that buying a home can absolutely make sense for the right person.
But when he applied the same financial scrutiny he uses for clients to his own situation, the conclusion was clear.
‘I did the numbers, and it just didn’t work out,’ he told Daily Mail, explaining that even with a substantial deposit of around $600,000, the cost of owning a comparable property – valued between $3 million and $3.5 million – was much higher than renting.
Because mortgage repayments require both principal and interest, the gap between the two scenarios quickly became, in his words, ‘astronomically different’.
Rather than stretching himself financially to secure ownership, Mark decided to take a step back and consider what that trade-off would actually mean for his life.
At a time when homeownership is still widely seen as the ultimate financial milestone, Sydney wealth manager Mark Welch (pictured) has made a decision that goes against the grain to rent instead and funnel extra into shares, savings and his superannuation
Choosing lifestyle over leverage
For him, the decision to rent was as much about his quality of life and leisure as it was about money.
‘Lifestyle’s super important to me,’ he said, adding that committing to what he estimates could be more than $20,000 a month in mortgage repayments would significantly limit how he chooses to live.
Instead, he takes a more balanced approach by investing a portion of the money he saves by renting, while using the rest to enjoy his life now rather than deferring it.
‘If I put the difference into an investment account… and then the rest I can spend and enjoy life, I’m kind of achieving the same result,’ he explained.
That philosophy allows him to prioritise experiences that are more important to him, like travel, time with family and hobbies, which he believes many homeowners sacrifice under the weight of a large mortgage.
‘A couple of trips a year… going to Europe for summer… I would not be able to do it if I had a mortgage like that.’
Mark, 47, who lives in a three-bedroom terrace in Surry Hills with his partner and child, is not anti-property, however. In fact, he was quick to point out that buying a home can absolutely make sense for the right person, but for him, the numbers don’t add up for his lifestyle (Stock photo)
Rethinking the ‘Australian dream’
Mark believes one of the biggest issues in Australia’s property conversation is how deeply ingrained homeownership has become, and often without people fully understanding the financial implications.
‘There are people out there with less money than me getting these astronomical mortgages… complaining about not having money to do anything.’
He said that, during his early years working as a mortgage broker, a mentor encouraged him to deeply understand debt as a core pillar of wealth creation, which ultimately gave him a clear-eyed view of how powerful, but potentially dangerous, borrowing can be.
At its core, he argued, the focus should shift from ownership itself to the cost of achieving it, with rising and unattainable ongoing repayments.
In his view, many buyers become so fixated on securing a home that they overlook how the associated debt can impact their lifestyle, stress levels and long-term flexibility.
‘Why is he giving it all to the bank in interest?’ he added.
After crunching the numbers, he said buying simply didn’t stack up – even with an impressive $600,000 deposit, owning a $3m–$3.5m home (like her currently lives in) would cost far more than renting, with repayments quickly becoming ‘astronomically different’
A different approach to building wealth
Rather than tying up his capital in property, Mark has instead built a strategy focused on diversification, liquidity and long-term discipline.
At the centre of that strategy is superannuation, which he maximises due to its significant tax advantages.
‘The benefit… between what I would pay in my marginal tax rate versus what I pay to get the money into the super fund… is more than the return that properties and shares give me combined.’
Outside of super, he invests in a portfolio of ETFs (Exchange-Traded Funds) and maintains both a liquid investment account and a substantial cash reserve of around 12 months’ worth of living expenses.
‘I’ve always got access to cash… if something goes wrong, that’s my first port of call,’ he said.
That flexibility, he notes, is a key advantage over property, adding that if he needs it then he can access it, instead of having to wait and sell a property first.
The reality check for buyers
Despite his personal preference for renting, Mark is clear that buying a home is not inherently a bad decision, but it should always be an informed one, saying everyone’s decision is personal.
His biggest piece of advice is to understand your cash flow and stress-test your finances before fully committing to a mortgage.
‘What happens if that second income loses their job?’ he said, pointing to the risks many households face when relying on dual household incomes to service large loans.
Instead, first, he recommended building a financial buffer of at least 12 to 18 months and avoiding the temptation to ‘just scrape in’ with a deposit.
‘Put some money aside just in case there’s an emergency.’
Rather than tying up his capital in property, Mark has instead built a strategy focused on diversification, liquidity and long-term discipline. At the centre of that strategy is superannuation, which he maximises due to its significant tax advantages
Join the debate
Has chasing the “Australian dream” of homeownership actually made life harder for many families?
A shift in mindset
While previous generations often viewed property ownership as non-negotiable, Mark believes attitudes are beginning to change more now, particularly among younger Australians.
‘They’re not kind of fixated on it… they also want to have a lifestyle.’
As for his own future, he hasn’t ruled out buying altogether. But for now, he’s confident that renting – combined with disciplined investing – aligns better with both his financial goals and the life he wants to live.
‘I enjoy my life. I’m happy,’ he said.
Because, as he sees it, wealth is not just about owning an asset – it’s about having the freedom to live well along the way.
