If you’re moving to Australia or simply moving to a new part of Australia, you may be struggling on whether or not to rent or buy an Australian home. Figuring out which choice to make depends upon your situation and whether or not you can afford to purchase a home that meets your needs. Renting may be cheaper in the beginning but cost you more money in the long run. Buying may seem ideal, but not if you don’t plan on staying too long. Here are some points to consider when choosing whether to rent or buy.
How Long Will You Be In the Home?
If you’re living in Australia temporarily, it may be best to rent. This way you don’t have to rely on the sale of your home before you can move again. If you don’t plan on staying more than three years, renting may actually save you money. You can even consider living with a roommate to help offset the cost of rent. Many people think of apartments when it comes to letting, but there are a number of Australian investors who purchase homes and let them out on a yearly basis. If living in Australia for work, you may be able to get your company to help you locate a rental home.
Can You Qualify for a Loan?
It may be better to rent if you won’t currently qualify for a loan. If you’ve never owned a home before, you can probably qualify for a first time home buyer loan. This type of loan takes into consideration that you’ve never owned a home before and allows first time home buyers to find a financial institution willing to provide loans. If you know that you’ll easily qualify for a loan and won’t have a problem with a monthly mortgage payment, buying a home may be a good idea.
Will You Save Money?
In larger cities, such as Melbourne or Sydney, it’s sometimes cheaper to purchase a home than rent. Since the larger cities are so popular and the population is higher, developers create rental properties with monthly rates that are often higher than the monthly cost of a mortgage. Some realtors work with rental agencies to help clients find temporary rental homes. If you’re not sure about the rental specifics in the area you want to live, talk with an Australian real estate agent about the pros and cons of buying versus renting.
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