Looking for some advice. Investing in managed funds while renting versus buying a house

I’m weighing up two different approaches for a 30-year financial plan: investing in managed funds while renting versus buying a house. I’d love to get your insights on which option might be better, considering both financial and personal factors.

Here’s a summary of each:

Option 1: Investing in Managed Funds + Renting

• Starting Investment: $50,000
• Monthly Contribution: $4,000
• Annual Return: 9%
• Rent Cost: $700/week
• Total Annual Rent + Electricity: $38,000
• Potential Growth After 30 Years: $7,471,836

Option 2: Buying a House

• Property Value: $800,000
• Loan Amount: $640,000 (20% deposit)
• Interest Rate: 6.78%
• Total Annual Property Costs: $10,600
• Potential Growth After 30 Years: $4,594,793

Key Takeaways:

• The managed funds + renting option could potentially yield higher returns ($7.47 million) versus the property value growth ($4.59 million).
• Homeownership involves more upfront and ongoing costs but offers security and equity, whereas renting has the potential for rising costs over time.
• Personal factors like lifestyle, housing security, and market fluctuations also play a role.

Based on this, what would you consider the pros and cons of each approach? What other factors should I take into account that might shift the balance between these two options?”