Example 1: Buying a Car vs. Buying a Home
Let’s say you want to:
Buy a new car for $50,000 next year.
Buy a home in five years, and you need $150,000 for a deposit.
If you pay for the car in cash, your savings drop significantly, which delays when you can afford a home:
Year | Savings Without Car | Savings With Car |
2025 | $80,000 | $30,000 |
2026 | $110,000 | $60,000 |
2027 | $140,000 | $90,000 |
2028 | $170,000 ✅ | $120,000 ❌ (Still short for a deposit) |
💡 Takeaway: If buying a house sooner is your priority, you might consider:
Buying a more affordable car or financing part of the cost.
Delaying the car purchase until after securing a home.
Example 2: Buying an Apartment to Live In vs. an Investment Property
Let’s say you have $100,000 in savings and are deciding between:
Buying an apartment to live in ($600,000) with a 20% deposit ($120,000).
Buying an investment property ($600,000) with a 10% deposit ($60,000), renting it out, and keeping more savings.
Scenario | Deposit | Remaining Savings | Rental Income (Annual) |
Live-In Apartment | $120,000 | $0 | $0 |
Investment Property | $60,000 | $40,000 | $30,000 |
💡 Takeaway:
Living in your own place gives security, but you’ll have less cash flow.
An investment property can generate rental income, potentially making you better off long-term.
Canwi helps you compare these scenarios side by side so you can make an informed decision.