Renting vs Buying a New House in Canberra
Getting to choose between renting vs buying a house in Canberra can be a tough decision.
While both are good and seem to be excellent financial decisions, it all depends on the angle from which you are looking at it. Real estate experts, as well as builders in Canberra, believe that buying a home has the edge over renting.
Nevertheless, there may be unknown factors influencing your decision, be it as an existing investor or as a first-time home buyer. The questions you may find yourself asking are,
“What’s the difference in renting vs buying a home in Australia? Which of the two is more beneficial to me? Should I rent or buy a house?”
Renting vs buying your own home
Some people fall back on the ease and freedom that comes with being a renter in Australia. One of the points of relief could be being free from the stringent monthly or weekly mortgage.
Also, repayments attached to owning a home and the pressure that comes with having to save up a particular amount of money to ensure the patterned collection (for fear of foreclosure) is another issue.
Others include payments of repairs, the flexibility of location/movement etc.
While these may be justifiable reasons for such decisions, it will do you well to note that, on the average, renting repayments outstrip mortgages.
In Canberra, it’s no news that her business organisations are incredibly fluid. The overall workforce is continuously on motion, so the price rate of commodities and services are hardly stable.
These affect the rental market profoundly. There are more interstate and the international influx of students and visiting tourists to the attraction centres in the state. These, while mounting pressure on the prices of commodities, affect the rental market tremendously.
Think of what this would mean to those hoodwinked by the ease that comes with rent repayments. It would mean unplanned financial decisions to meet up with the ever-growing, yet unreliable increment of house rent.
Can you imagine the instability it brings on the finances of a home where budgets have been for what to do or what not to do on a weekly/monthly basis?
One major issue with renting is that rent payments are “dead money.”
Although tenants in Australia, mostly in Melbourne and Canberra, think they’re “only” making weekly/monthly rent repayments for the houses, the mystery is the fact that they’re indirectly funding a man’s business/plan — who’s looking up to making bigger plans to make more money. Rent payment has no investment potential.
Of course, this case doesn’t apply to those who are making plans to move out of this vicious cycle of weekly/monthly monetary payment for a much better option (owning a home.)
Consequently, if you want something special, you can count on Achieve Homes to build an amazing custom home for you.
Benefits of Being a Property Owner in Australia.
With the ever-increasing return on investments (ROI) on Australian property, one would expect that owning a property would be an arduous task. Contrarily, investing in properties in Australia is easier compared to other countries.
Thanks to bodies like Real Estate Institute of Australia (REIA), Australia Prudential Regulation Authority (APRA), Federal Investment Review Board (FIRB), as well as the Government for making property acquisition easier (both for citizen and foreigners).
Apart from the security and peace of mind that comes with owning your own home, there are other significant benefits:
- It’s a Worthwhile Investment
The development that comes with time always leads to an increase in the price of housing properties. A government project on development may call for the purchase of the land your property stands on, or you may even decide to sell it as times passes. The money the government pays you will surely surpass the amount you bought the house for. You also will find a considerable gain in selling it to any buyer — no matter the location. These factors will help build your wealth.
- It Offers Flexibility
You can treat the floors and paint the walls according to your liking without being worried about legal fights with your landlord. Other flexibilities include being sure of the number of mortgage payments that leaves your accounts from time to time basis, as opposed to renting payments that fluctuate with demand. Also, with mortgage payments, you develop the discipline of saving for personal growth.
As a renter, how do you prepare for owning your own home?
There are practical ways to prepare yourself to buy a new house while in a rented apartment.
- Examine the total cost of owning a home.
When you compare renting vs buying a new house, there are small additional fees beyond your monthly principal payments that the latter incurs. These payments are interest incurred from the loan used for the purchase, tax, and insurance fees for property protection. You must know all the monetary commitments you’ll be making when you’ve acquired the house.
- Identify mortgages that are suitable for you.
Do all the “percentage math,” comparing the amount of money you have, the down-payment required and the mortgage companies you intend to engage in this business with.
- How good are your credit ratings?
To get mortgages with the lowest rates, you must look into ensuring that your past credit transactions approve you as reliable and trustworthy. Consider getting more credit accounts, if you’re operating on just one credit card.
Are you thinking of the best way to own a property in Australia? Achieve Homes is committed to constructing fantastic custom homes in Melbourne and Canberra for our clients.
Get in touch with us today to get started on your home ownership journey.