Rent or buy?

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Rent or buy?


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Old 01-09-2013, 04:01 PM
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Rent or buy?

While employment is still relatively high across Australia and the economy is still growing, there are concerns about a potential slowdown in the short to medium term. The property sector in Australia has remained relatively strong compared to its overseas counterparts which, together with a tightening of bank consumer credit arrangements, have placed many properties in Australia out of the reach of first-time buyers.

Does it make sense to rent a property in Australia today or would you rather buy?


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Old 01-25-2013, 09:35 AM
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I cant afford to buy now, so renting is an the only option for me


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Old 01-25-2013, 09:37 AM
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Hi Vincentjames

One of the major benefits of renting is the flexibility that this gives you. What are your views on the Australian property market as a whole?


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Old 01-25-2013, 10:07 AM
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Quote:
Originally Posted by Editor View Post
Hi Vincentjames

One of the major benefits of renting is the flexibility that this gives you. What are your views on the Australian property market as a whole?
I think it's getting more stronger now compare middle last year


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Old 01-25-2013, 09:59 PM
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What a question...

If you have a choice to pay $400 per week for rent or $400 per week to repay your mortgage it is obvious that you choose the second option. Paying rent takes you nowhere in terms of getting closer to owning your own house. Repaying mortgage does take you there even if it may take years.

Renting is good for so called "bouncers" and adventure seekers. These people never seek settling in one place but love moving from one place to another and changing jobs. They usually make quite unattractive employees for potential employers. But even many of these purchase an investment property somewhere as they are aware that one day they may grow tired of this lifestyle.

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Old 02-18-2013, 06:51 AM
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Where can I get some information as to house pricing versus rent rates? Is there any site?


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Old 03-01-2013, 10:35 AM
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I have been looking around the Internet and found an interesting snapshot of weekly rent payments and weekly mortgage repayments across Australia.

Adelaide

Earlier this year the average weekly rent in Adelaide was AU$340 against the average weekly mortgage repayment of between AU$330. This was on an average mortgage of AU$241,000.

Melbourne

The weekly rent in Melbourne is around AU$360 against a weekly mortgage repayment of around AU$394. This is based upon an average mortgage of just over AU$288,000.

Perth

The average rent per week in Perth this around AU$470 which is well in excess of the average weekly mortgage payment of AU$408 based on an average mortgage of AU$298,000.

Sydney

The average weekly rent in Sydney is around AU$500 which compares against an average weekly mortgage payment of AU$422 – this is based upon an average mortgage of AU$308,000.

Darwin

Darwin is the most expensive of Australia's major cities with the average weekly rent standing at AU$650 against the average weekly mortgage repayment in Darwin of AU$401. This is based upon an average mortgage of AU$293,000.

This gives you an idea of the current situation with regards to rent v mortgages.

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Old 03-01-2013, 09:37 PM
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And it becomes even more attractive if you overpay your mortgage a bit initially and reduce your loan base. That way your payments go down by even more.

What about Brisbane and Gold Coast?


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Old 04-04-2013, 01:47 AM
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Quote:
Originally Posted by Editor View Post
While employment is still relatively high across Australia and the economy is still growing, there are concerns about a potential slowdown in the short to medium term. The property sector in Australia has remained relatively strong compared to its overseas counterparts which, together with a tightening of bank consumer credit arrangements, have placed many properties in Australia out of the reach of first-time buyers.

Does it make sense to rent a property in Australia today or would you rather buy?
The market

Taking into consideration the current economic climate, it makes sense that many people would be sitting on the fence regarding renting vs buying.
The main factor in this decision is capital growth. There are many different pockets of the Australian real estate market and all are showing different rates of capital growth.
Therefore, with proper research or statistics and taking into consideration your life circumstances and the suburb you want to live, an informed decision can be made.

Your cashflow

If you are renting and saving, this is a good indicator that you are ready to buy a property. Did you know that today financial institutions consider regular rental payments as a form of verification of savings? This provides a contrast to the common misconception "rent money is dead money".

Your life circumstances

If you have been renting, living in the same area for a while and plan to live there for a long time, then this is a pre-cursor to purchasing your first home. If you have the ability to save, or have assistance from a close family member in the form of a Guarantee or gift for a deposit, there are lenders which will look favourably on the right candidate as a first home buyer.

Rent vs Buy

An accredited mortgage broker can give you valuable information based on your own circumstances regarding the decision to rent or buy.

If you are currently renting and you manage your finances perfectly, this is a scenario where with as little as 5% deposit, you could be in your first home.

in summary, Savings/gift/Guarantour + a clean rental ledger = ticket to owning your first home!


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Old 04-12-2013, 01:50 PM
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Can you get 100% Mortgage in Australia?


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