Malaga reckons: "Try getting the figures right. For first home buyers each state is different but in WA No stamp duty under $500k plus $3000 for existing buy selling fee around 2.5% - 3% = $12,500 Yes transaction fees are high which means we cannot flip like in USA which also means stable prices.
Renting is easier 4 weeks rent as bond plus $400 - $600 pw for a livable property $600 pw x 52 = $31,200 year one excluding rent rises that is $312,000 in 10 years Thank you very much all renters."
You're ignoring the opportunity cost of $250k interest over 10 years on the $500k (only fair if you're comparing buying to renting, and assuming you can average only 5% over 10 years - probably would be more).
So for your example isn't it actually more like:
Renting $312k for 10yrs
vs
Buying $250k opportunity cost plus $12.5k agents fees plus stamp duty (for anyone other than FHB) plus depreciation plus maintenance plus council rates plus insurance
