Choosing Whether to Rent or Buy an Australian Home

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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.

 

Regards
Western Australia

Richard Colum

Real Estate Colum Copyright © 2010 – 2011 All Rights Reserved

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8 Responses to “Choosing Whether to Rent or Buy an Australian Home”

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  1. Lisa Wood says:

    Hello Richard,

    We have done both – rented and owned. Its far easier to rent as none of the repairs fall back on us! Last year we rented for a year and it was good – we run the real estate when ever something wasnt working! Luckily we own our motorhome out right and can now move from location to location whenever we want 🙂

    Cheers
    Lisa

  2. Harry Lynn says:

    G’day Richard,
    Very well written, mate. You discuss what is the eternal question to which there is not always a simple answer. Keep scratching your head.

    I’ve Stumbled, Pinged and done hellotxt but when trying to Digg it says they can’t access your info….Bugger !

    Cheers
    Harry

  3. Tegan Hadley says:

    Just the predicament I am in at the moment, as I am not sure whether to rent or buy. I know that renting will save me money in the inbetween time but dont want the rent money to go towards someone else owning the home! Thanks Richard, you have given me a few things to think about.

  4. Hi Richard,
    I enjoyed reading your articles, very comprehensive even with a personal story about your life, made good reading. I had my own home in Darwin for 10 years and it was quite an experience which was a real learning curve for me. You hit the nail on the head when you talked about planning before buying or renting, as both are big decision these days. In my younger days renting or buying was very cheap and plentiful but not anymore, you are right it needs to be thought out carefully and with professional help too.

  5. Kerry Lea says:

    Hi Richard

    It is always a hard decision to choose whether to rent or buy. It is one of those things were you need to do your homework. This article has useful information for the home buyer.

  6. Terry Paris says:

    My personal preference is to own the property in which we live but understand that personal circumstances vary so there is no one answer for all people. From the broader view, owning a house in Australia, which appreciates in value, provides a useful hedge against inflation.

  7. Carolyn says:

    It’s an interesting question, renting or purchasing, just depends on where you are in life. My kids are just starting with the purchasing…and it’s a big step, but also exciting.

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