Many of us dream of owning a house. However, buying a property is a big decision that calls for the thoughtful consideration of many factors. These include financial resources, investment goals, lifestyle and family circumstances, and preparedness for certain risk-taking. With that said, it is easy to guess why many people rent instead of purchasing. But there is a saying in the real estate world – rent money is dead money. Factor this in your contemplations and the decision of renting vs. purchasing gets even more confusing. If you are wondering, whether you should buy or rent a house in Australia, the following takeaways may give you some clarity.
The contending question - buy or rent a house in Australia?
Buying vs. renting a house in Australia is a question with many moving parts. Hence, there is no single correct answer. The determining factors will ultimately be your personal circumstances. Buying a home is undoubtedly a significant life decision. It probably is one of the biggest transactions you will ever make. Hence, your budget and financial stability will play a central role in your decision-making process. Besides, you will need to take assistance from a professional real estate agent to make an informed decision. Thus, whether you are moving to Australia and buying a property overseas or looking to purchase your own home for the very first time, a seasoned real estate team will play an instrumental role in your journey. Aside from your situation, there are some objective benefits and drawbacks to renting or buying a house in Australia. These will feature in most buying vs. renting scenarios. Hence, let’s do the sums.
Stability or flexibility?
An unwritten rule is that owning a house gives you stability while renting allows you more flexibility in terms of future property investments. This concept is quite self-explanatory. Owning a home will undoubtedly come with some intangible benefits. For instance, feeling well-situated and at ease to add personal touches to your abode.
Thus, to help you decide if it is better to purchase or rent a house in Australia, try to answer the following question. Do you plan to stay in one place for at least five years? If your answer is yes, then buying your home could be a good fit financially. In this case, even if you decide to sell your house in few years, you will highly likely get a decent return on your investment. A good real estate agent will provide you with invaluable advice before you buy a home to help you fulfill your home-owning objectives in the long run.
Costs of renting vs. purchasing a house in Australia
If you are moving to a new area, it is always best to give yourself some time to explore the local neighborhoods. Thus, make your home buying decision one step at a time. And so, when you crunch the numbers, initially renting may seem cheaper. This is due to the expenses that add up when you are purchasing a property. In addition to a mortgage, there are other elements to consider. You will need to factor in the closing costs, possible renovation expenses, and various other maintenance tasks, including a house inspection. However, this can be a drawback if you observe it in a short-term time frame. Owning a home will help you build equity and get a premium when you decide to sell it. Moreover, analysis shows that after six years of mortgage payments, these result in lower total costs than renting for the same period.
Consider your investment opportunities
First and foremost, buying a house in Australia allows you to leverage your investment. Banks in the Land Down Under often lend an excellent percentage of the total value of the property you intend to buy. This certainly is one of the many benefits of investing in real estate. Of course, you can use it to your advantage. Buying a house with investment opportunities in mind is always a good idea. And this is regardless of whether you decide to put down roots or pursue a career that requires you to relocate often.
Moving from the US to Australia
The Australian real estate market is equally attractive for locals and overseas buyers. It could be that you are moving to Australia for a new job. Or, you fell in love with the smallest continent on your last visit so much that you have decided to permanently move here. Anyway, you will have to solve the housing question first thing. Should you buy or rent your abode in Australia will depend on many factors. But one thing is for sure. You should not attempt to make big decisions without consulting with a local real estate professional.
Besides, moving to the far east means you will have to find adequate partners for relocation from the States. This is equally important as sorting your housing question. Thus, make a point to hire experienced and reputable international movers to help with your relocation from the US to Australia.
Should you buy or rent a house in Australia – final thoughts
As a prospective home buyer, you should weigh the pros and cons of buying vs. renting a property in Australia carefully. Therefore, it is of utmost importance to arm yourself with knowledge and reliable information. Most importantly, let those be your main deciding criteria. Hence, thoughtfully consider your financial and personal circumstances. Further, take assistance from a reliable real estate agent to guide you in the right direction.
Owning your house is certainly always the best possible choice and the dream of many. However, affordability is always a tricky aspect. On the flip side, renting is a great short-term solution. And especially so if you are new to Australia and need a while to acquaint yourself with the surroundings and local real estate market. Either way, you would like to have a good real estate team on your side to help you navigate the constantly changing climate of the real estate market. In summary, whether you should buy or rent a house in Australia will ultimately depend on your personal goals and financial power.