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Should you Rent or Buy in Today’s Market?
over 2 years ago
Should you Rent or Buy in Today’s Market?
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If you thought that buying a property in today’s market was impossible, you might be surprised to find that it can be cheaper than renting in some areas of the country. According to an analysis by Real Estate Australia, it is estimated that 27% of homes across the country are cheaper to buy than rent. This is dependent on location, as figures vary within each state and territory.
There are pros and cons to buying and renting and it all really just depends on your current situation and which will work best for you.

Renting
Pros:
Ability to move whenever the lease is up.
Less financially stressful.
Major expenses are taken care of by the property owner (usually).
No down payment required.

Cons:
Rent increases.
Rental payments never stop (unlike paying off a mortgage).
Not being able to make the home your own without permission.
You will never own it.

How to decide what is right for you?
Consider the lifestyle you live and ask yourself, what you value most? If flexibility is above everything else renting may be the best option for you!

Buying
Pros:
Stability.
You know exactly what you will be paying & for how long if locked into a fixed rate, if variable, there will be increases/decreases in payments depending on the current interest rates.
Your property can become an asset.
Properties generally increase in value over time if kept well, therefore you can build equity or make a profit if you sell.
You may be eligible for a First Home Buyer grant.
Being able to make the home your own, for example, renovations, interior design, outdoor areas and landscaping.

Cons:
Large financial responsibility.
Less flexibility.

First Home Buyers
Currently, there are several excellent incentives to secure your first home if you meet certain criteria’s.  So, if you’re ready to buy a property that will be your primary place of residence in Australia and have done your market research, can responsibly take on the repayments and commitment then take a look at the Government First Homeowner Grants that may be available for you to take advantage of to get into your first home sooner.
Give Ranges First National a call on 03 9754 6111 or Mick Dolphin on 0429 684 522 for real estate assistance.
For financial assistance and mortgage options please contact Edward McInerney from Home Free Mortgages on 0400 522 464 or edward@homefreemortgages.com.au.