Owning a house is a dream most people have. It gives you financial freedom, and it’s a place where you can put down your roots. But the housing market today is not as accommodating for home buyers, especially if you want to live in a bustling metropolitan like Brisbane.
But another argument is that you are already paying the rent. Dead money, as people call it. So when you can pay your rent, why not step it up a bit and pay for a mortgage. This is a very solid suggestion and one that works for a lot of suburbs, where the mortgage is sometimes equal to what you might pay in rent.
But it doesn’t hold true for costly properties like the ones in the inner city areas of Brisbane. Especially when you consider the significant deposit amount you will have to pay. Let’s see the case for both scenarios.
Case for Buying
If you are already a resident or planning to move permanently to Brisbane, buying a property is ideal for you. Purchasing a house ideally makes sense if you plan to live there for at least 15 to 20 years or more. It would be unwise to buy a house in a neighborhood without actually knowing whether it’s a suitable place for you, simply because it was affordable; and then try to resell the property just after a few years.
The housing market in Brisbane is consistent, relative to other metropolitans. With units showing a slight decrease in prices compared to the houses. If you have the capital for a deposit, right now might be a good time to buy. But if you are buying only to sell it a few years later, you might not get the price hike you expect.
On the plus side, you will own your property, without the hassle of answering to anyone or suffering through restrictions that landlords place. The amount you will pay will go into buying your own property, rather than someone else’s.
Case for Renting
Renting is the easiest and most efficient option for people who want to stay in the city on a short term basis. People who want to test if an area is worth buying a house i, can also rent there for a while to get the feel of it. And renting is the only option if you do not have a lot of money for the deposit and can’t pay the extensive mortgage.
Renting is efficient in the way that you don’t have any maintenance cost, you can save up a decent amount, and you can easily move to another area or city. On the flip side, renting bonds you to landlord’s terms, you have no independence to renovate your living space, and you might have to move out when you don’t want to due to an eviction notice or because the property might go for a sale.
Brisbane is an expensive place to buy while suburbs might be more affordable. The decision to buy or rent stems a lot from your own financial condition, permanent residence decision, your job, and your area of choice. Whatever you choose, make sure you understand your means and needs well enough, and have a solid plan for the future.