Cheaper to buy or rent?
Buying property is becoming cheaper than renting in many suburbs across Australia, according to research by property pricing specialist RP Data.
It was found that in 94 metropolitan and regional suburbs, the monthly cost of rental outstrips the monthly mortgage repayment on both houses and units. This news has left many renters doing their sums to determine whether paying off a mortgage is actually cheaper than paying a landlord.
For those of us having this debate, there are some strong pluses that fall squarely on the side of buying your own home. Perhaps the strongest is that it gives your family an asset to call their own that can be passed down through generations or downsized tax-free to fund retirement.
Another great advantage is that the family home is not subject to capital gains tax. Unlike other assets such as shares, you don't have to pay any additional tax when you sell your home.
It's true that when you rent you don't have to spend money on the home's maintenance, but you do have to go through the landlord for permission to do simple things like hang pictures, replace a hot water system or own a pet. When you own a home it's under your control - your own little piece of Australia!
Ultimately the decision to buy your own home will be determined by your financial goals. It's important to make sure you can meet the monthly mortgage repayments, and this is where we can help - by tailoring a home loan suited to your lifestyle and financial position.