If you are looking to move or are interested in relocating, you may be wondering whether to rent or buy. Which option is more economical and will work better in the long run? The answer depends on your personal financial situation and long-term goals. Let's take a look at a few factors that may help with your decision.
There are several upsides to renting. You are not responsible for fixing things that might go wrong like plumbing and other general maintenance. The landowner should be the one to prioritise fixing these issues, which is a benefit to the tenant. In addition, renting allows you the option to leave and be more flexible in where you want to live. This is perfect for some lifestyles, and following the falling inner-city rental prices, more people can get what they want for less in places like Sydney and Melbourne. Prices are rising above their COVID-19 low, but are still relatively affordable.
According to the Australian Institute of Health and Welfare, 32% of people who live in Australia are renters. For some, this is their only option. However, there are many homeowners in our country who find buying to be more affordable in the long term.
When it comes to buying, the process may seem rather overwhelming, especially to a first-time homeowner. One of the main draws of buying a home or property is that it is seen as an investment that could come back to you in the long term. If you have good credit and enough for the down payment on a mortgage, buying could be a better option. This is especially true if you do not want to move anytime soon and are looking for an investment option.
Even though prices have grown recently, the market is still favoring buyers. According to an analysis by REA Insights, "more than half of homes will be cheaper to buy than rent over the next 10 years, at current prices." It cites this as being especially important and true outside of New South Wales and Victoria.
The analysis wrote that "more than 80% of houses and almost all units outside of the most populous states are estimated to be cheaper to buy than rent." This, and low borrowing rates, have urged more people to consider buying a home instead of renting it.
The right choice is different for everyone dependent on factors like location, financial stability and lifestyle. To learn more about what is right for you, reach out to Ray White Surfers Paradise today.