If owning a home is a key personal goal for you, the decision to rent versus buy isn’t always easy.
Often the debate over if you are better off buying a property and paying off your own mortgage, or simply renting rather than buying can be confusing to say the least.
To help you work it out, Mortgage Choice has put together this Money Chat video, ‘Renting Versus Buying’ as a starting point in deciding whether to rent or buy.
It looks at both sides of the debate, including using funds that are given to you by parents, or using your parent’s house as security for your loan.
From there, I can help you look at the options available to you that may just help you into a home of your own.
This article from realestate.com.au gives you a scenario that is relatable in today’s market.
Mandy, a 30 year old single lady is renting in Sydney (where we know prices can be a little steep compared with Brisbane, but the concepts are the same). In her situation, to rent the property she is currently living in, it would cost her almost $30K less than if she bought it. On the other hand, if she put the same rent payments towards her own mortgage, she would be building her wealth in terms of equity, by almost $130 per week.
So should she rent or buy? Read the full article here to find out.
Working it out
If you are debating whether to rent or buy yourself, the best first step is to speak with a mortgage broker, who will give you an idea of what your home loan repayments would be if you were to purchase a property. You can then compare them to what you would pay to rent that property. This will help you determine which option would work best for your situation.
Your Mortgage also has a handy Rent vs Buy calculator that can be used to compare your estimated financial position after 7 years of renting, with your estimated financial position after 7 years of home loan repayments. Handy if you like crunching the numbers yourself.
Either way, for expert advice on how you could get off the rental cycle and into your own home sooner, contact me below to arrange a chat or a meeting, at no cost to you.
Or, for further information on this or any other topic, please contact me directly;
Phone 07 3833 9666,
If this information has been helpful to you or might be relevant to someone you know, please share it via email or on social media.
Daniel is looking forward to helping you with your home loan options today. Thanks for reading our blog.
This article is for general information purposes only and does not constitute specialist advice. It should not be relied upon for the purposes of entering into any legal or financial commitments. It has been prepared without considering your objectives, financial situation or needs. You should, before acting on the advice, consider its appropriateness to your circumstances, and specific investment advice should be obtained from a suitably qualified professional before adopting any investment strategy.