Property Market Information: Should I rent or buy?

By the resi financial blog team, 26 May 2014

Should I rent or buy

Choosing whether to rent or buy is no easy feat. Investigating the best fixed interest rates is a good idea if you're thinking about buying your own home. However, renting has its perks, too. 

Crunching the numbers

Rental figures and housing growth differs across Australia. According to the most recent House Price Report from Australian Property Monitors, house prices grew by 9.8 per cent last year, with Sydney showing an even stronger figure year-on-year to December (15.1 per cent).

With house prices in Sydney reaching $763,169 by December, many potential home buyers may wonder whether it's more feasible to rent. Melbourne house prices reached $568,824 during the same period, while houses in Perth soared to an average price of $605,856.

On the other hand, RP Data also reported in early May that "dwelling values move higher, at a faster pace than rental rates, particularly in those cities recording very high rates of capital growth".

Melbourne house weekly rents were $375 on average in December, while unit rental prices crept close behind $350 per week. In Sydney, house rental prices were $500 in December, with units sitting at $485 per week.

Perth median weekly asking rents for houses have soared close to to the likes of Sydney, with a figure of $480. Comparatively, unit rents in the area are a lot cheaper, at $400.

Weighing up the options

When it comes to deciding whether to rent or buy, there are plenty of factors to weigh up. While buying a house requires a significant deposit, there are strategies to help you save faster. 

You won't have to trump up with a deposit if you choose to rent, but you could have to move when your lease ends if your landlord chooses not to renew your rental agreement. 

You'll be responsible for home maintenance when you buy your own home, but for many people, this is a perk of home ownership! Being able to decorate your home and make renovations that reflect your own personality can be plenty of fun, and with a line of credit, it's financially possible, too.

Learn more about using a line of credit to renovate.

Categories: Home Loans