Looking at moving but can’t decide on whether to rent or buy?
The decision to rent or enter the property market is not always an easy one to make, deciding whether you’re better off with one option or the other can become confusing and overwhelming. Here are some questions you should be asking yourself to help make the decision.
What are my financial priorities?
- Do you want to own your own home outright in 20 years?
- Do you want to travel for long periods of time first?
- Do you want an investment property?
- Do you have debts you would like to focus on paying off first?
There is no doubt that saving for a sizeable deposit and paying off your home loan will tie up your money more so than if you weren’t purchasing a property. Decide on what your financial goals are and then prioritise them to see fi now is the right time for you.
Can I even save a deposit?
Saving for a deposit can be daunting and seem almost impossible and it can seem much more feasible to save for the amount to start renting (2 weeks rent in advance & bond). I would suggest setting yourself a budget that is not to restricting to make sure that you stick with and you will have your deposit ready in no time!
Will a home loan cost more than rent?
This is really a questions that should be answered case by case as it can differ with property markets and areas you are looking at. The simple answer is while you may be paying out more each week to own a house you are actually paying out less in “lost cost” than you are when renting. This is because all money you pay for a mortgage except for your interest are gaining you a percentage of your house that you now own while all money paid out for rent doesn’t gain you ownership of anything.
Can I see myself living here long-term or only for a limited time?
If you have found a property in an area that you love that you can see yourself being in long term than buying could definitely be the most cost effective way to go. If you only see yourself there for a limited time however you may be better off renting for now until you find somewhere more suitable. You could always enter the property market sooner with an investment home though if that’s something you would like to do.
Will I even qualify for a mortgage?
Applying for a mortgage can be nerve-racking especially when you are not sure if you qualify or not. Why not give our office a call on 07 3808 1070 to arrange a time to sit down with our broker and discuss your financial position and the best options for you? We would love to help you achieve your financial goals today!