Buying a Home, is it Cheaper to Rent or Buy?

Buying v Renting

Buying a home

There are many advantages to buying your own home rather than renting. These include:

  • Paying off your own home rather than someone else’s.  “Rent money is dead money”
  • Buying gives you more control and freedom
  • Design your own home
  • Make additions and renovations
  • Have a dog or cat
  • Put up pictures
  • Be able to do landscaping and gardening
  • No landlord inspections
  • Avoid the property being sold
  • No bond or bond refund arguments

Buying a Home

Is it Cheaper to Buy or Rent a Home?

We asked Brendan Styles from C-Finance Brokers the question, is it cheaper to rent or to buy a home in the long-term? Brendan has worked with many people looking into buying a home, both at North Harbour and elsewhere, and is an expert mortgage and financial advisor.

Is it cheaper to rent or buy a home?

Brendan: “Firstly, the rent or buy a home question mostly affects first home buyers or those that have just sold up and need flexibility for life and investment choices.

If you are currently renting in the northern suburbs of Brisbane for an average of $380-450 per week, it is cheaper to rent rather than buy a home. However this simple cost comparison only compares one variable out of several and if you are looking to move into ownership, there are three key things to consider:

1) Now vs the Future – “Pain vs Gain” – How willing are you to make sacrifices in the short term, for a long term benefit?

The day to day of renting may be ok for now, however if you continue to rent then you cannot benefit from capital growth as you would with buying your own home, or an investment property. You will experience rent increases each six months…and every $15 per week increase in rent is the same as a .25% increase on a $350K mortgage. Now that’s an interesting statistic…we cry poor when the bank increases interest rates, but we can’t do anything about a rent increase.

2) Security & Control. Most of our first home clients value this, almost as equally as the cost equation. We do get sick of being told what we can and cannot do, having to open for inspection, changing tenants and losing money every time from crazy landlords holding back bond. – we have all been there. If you want to have security and control over your living situation, it is better to buy v rent.

3) Good time to buy: In the new home market, we are financing clients into their first home with as little as $1-2K deposit. We then do the cost equation for our clients, and most of the time the mortgage in the short term is a little more expensive, but better than waiting and finding lending has tightened again and ownership has moved out of reach.

My advice is simple, read books like barefoot investor to learn more about making the short-term sacrifice for a home loan. And, do your research in that getting into a new home can be easier and potentially cheaper than what you think at this stage in the market, providing you want to live in the area for the mid to long term. Check the numbers, but also consider all the factors when making this decision.

To talk to Brendan and the team at C-Finance Brokers about buying a home, click here.

Find North Harbour

North Harbour’s Sales and Information Centre & Display Village with café and two playgrounds is open seven days a week, 10am-5pm. Located on the corner of Buckley Road and Fraser Drive, Burpengary East, the Display Village showcases 33 brand new Display Homes from 17 of Australia’s best new home builders. To find out more about buying a home at North Harbour sign up for our email updates and find us on Facebook and Instagram (@northharbourliving).

Weekends at North Harbour

BITE Markets at North Harbour is a brand-new destination within the growing North Harbour community which has transformed weekends on the Northside of Brisbane. It’s the perfect place to eat, drink, catch up with friends and family, a place everyone is welcome, full of colour, adventures, wonderful food, entertainment and all sorts of flavours celebrating produce from the Moreton Bay region! Located at Exit 150 off the Bruce Highway on Nolan Drive, open from 4pm-10pm every Friday and Saturday night. Click here to see Bite TV!

North Harbour parkrun: 7am, every Saturday. Free 5km cross country run / walk around the future Heritage Park, everyone is welcome!

Sunrise Yoga in the Park: 8am every Sunday, free yoga class to suit all levels in Reflections Park. Beginners welcome, for more information please click the link.

North Harbour Café is also open every weekend including Friday Burger Nights and now delivers in the North Harbour and local areas every Friday night!

Valeco Homes at North Harbour Offers Buyers Elegant Homes on a Budget

Valeco Homes at North Harbour

Valeco Homes is one of 17 of Australia’s best builders who have designs showcased in our 33 home Display Village.

The designs of Valeco Homes cater to everyone from families to lock up and go style small lots, investors and first home buyers looking for budget-friendly homes. For a professional finish, Valeco’s building designers and interior design team rely on a combination of experience and industry training to create a modern, yet family-oriented finish. The Valeco Homes team pride themselves on being a true complete turn-key builder.

Sales Manager Miguel Ramirez says: “We’ll work with you to make sure you get exactly the look you’re after. Our experienced team will then make your dream home a reality.”

Valeco Homes has two brand new designs on display: The Mandalay 34 and The Fraser 21.

Valeco Homes

The Mandalay 34

This modern double storey family home has plenty to offer with four bedrooms on the upper level plus a study / fifth bedroom on the lower level. The Mandalay 34’s design includes an open plan kitchen / dining and family room with a spectacular void adding natural light and space, opening up on to the alfresco for your outdoor entertaining, featuring a pillar-less stacker door. A separate media room and a rumpus room gives this modern home a great sense of space. Walking into the master bedroom is pure luxury, from the designer walk in robe to the grand ensuite this master bedroom fit for a King and Queen.

Features:

•     4 bed plus study

•    Separate designer laundry

•    2.5 bathrooms

•    Ensuite with freestanding bath

•    Media room

•    Rumpus room

•    Open kitchen / dining / family room

•    WIRs to all bedrooms

•    Double garage 

 

The Fraser 21

This single storey home offers four bedrooms, the master bedroom with walk in robe and ensuite. A modern designed home, this style is perfect for the narrower block.

Miguel says: “Step inside and you will be pleasantly surprised how our 200sqm Fraser provides not only a separate but generous laundry but an open plan kitchen, dining and family room opening on to your grand alfresco for your outdoor entertaining. 

Having a separate living area gives this family home all the comforts of any larger home.”

Features: 

•    4 bed

•    Separate laundry

•    Open kitchen / dining / family room

•    Separate living

•    Raked ceilings

•    Grand alfresco

•    Double garage

To learn more about Valeco Homes click here.

 

Find North Harbour

North Harbour’s Sales and Information Centre & Display Village with café and two playgrounds is open seven days a week, 10am-5pm. Located on the corner of Buckley Road and Fraser Drive, Burpengary East, the Display Village has 33 brand new Display Homes from 17 of Australia’s best builders including Valeco Homes. North Harbour recently won the UDIA Queensland Award for Best Residential Subdivision and is EnviroDevelopment Accredited.

To keep up to date with the latest news and info, including upcoming events, sign up for our email updates and find us on Facebook and Instagram (@northharbourliving).

 

New at North Harbour

North Harbour is pleased to announce Edge Early Learning will open a new childcare centre at North Harbour in early 2020.

The new centre will be known as “Edge Early Learning North Harbour” and located on the corner of Buckley Road and Fraser Drive at the entrance to North Harbour.  The new centre will provide care for up to 120 children from 6 weeks to school age. Edge Early Learning has centres in various locations in Southeast Queensland including West End, Strathpine and Milton. Construction of the centre is proposed to occur in the second half of 2019, with a proposed opening in early 2020.

Edge CEO Annie Bryce said: “At Edge Early Learning we strive to be Australia’s best in early childhood education and our philosophy is to provide a supportive and gentle environment in which to learn, give children a strong sense of belonging and community and promote health and well-being.

“We’re looking forward to beginning our partnership with North Harbour and becoming a part of this great new community.”

North Harbour Project Director Peter Lightbody said; “We’re delighted to be able to announce our partnership with Edge Early Learning Childcare to bring new, much needed childcare facilities for young families in the growing North Harbour community.

“Edge Early Learning is a quality; well respected childcare provider and the new centre will be an excellent addition to our family friendly facilities.”

To find out more about Edge Early Learning, including enrolments, see https://www.edgeearlylearning.com.au/

 

Weekends at North Harbour

BITE Markets

Every weekend, food lovers BITE Markets at North Harbour, a brand-new destination within the growing North Harbour community. With over 40 flavour makers creating amazing food and drink from around the world, live entertainment and a children’s play zone, it’s the perfect place to eat, drink, spend time with friends and family. Located at exit 150 off the Bruce Highway on Nolan Drive. Click here to find out more.

North Harbour parkrun: 7am, every Saturday. Free 5km cross country run/ walk around the future Heritage Park.

Sunrise Yoga in the Park: 7am every Sunday. Free yoga class to suit all levels in Reflections Park.

North Harbour Café is also open every weekend including Friday Burger Nights.