The Cost of Renting vs Buying a Home

Cost of Renting vs Buying a Home

Brendan Styles from C-Finance Brokers is an expert mortgage and financial advisor and has many years of experience working with clients to review the cost of renting vs buying a home. We asked him to share his expertise on the question of renting vs buying.

Brendan: Firstly, the question of renting vs buying mostly affects first home buyers or those that have just sold their home and need flexibility for life and investment choices.

As an example, 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 of renting vs buying a home comparison only compares one variable out of several and if you want to own your own home, 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?

If you only ever rent then you cannot benefit from potential capital growth as you might with buying your own home. You will probably 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.

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 etc. If you want to have security and control over your living situation, it is better to buy v rent.

3) Good time to buy: While interest rates are staying at a record low, and the First Home Buyers Grant ($15000 towards a brand new build for eligible buyers) is still going…it’s a good time to buy.

Renting vs Buying a Home

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…getting into a new home can be easier and potentially cheaper than 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 find out more from Brendan and the team at C-Finance Brokers about renting vs buying, click here.

North Harbour has a variety of house and land packages which are great for First Home Buyers, with prices on our 3-bed detached house and land packages starting from $380,575. If you would like to find out more about house and land packages at North Harbour, please contact us.

Renting vs Buying

 

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 31 stunning Display Homes from 16 of Australia’s best new home builders. To find out more about living 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 dining experience at North Harbour. Bite offers cuisine from over 40 flavour makers, live entertainment and kids playspace and is the perfect place to eat, drink and catch up with friends and family. 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 Mountain Bike Trail: North Harbour’s new mountain bike trail is a great addition to our 1000 acres of open space and parkland and has been designed to suit beginners and families as well as intermediate level riders. Set along 6km of North Harbour’s beautiful scenic river frontage in the Heritage Park area, the track is open 6am-6pm on Saturdays and Sundays. The mountain bike trail parking/ set off point has picnic shelters, water and BBQs and is also located not far from the start of North Harbour parkrun which has toilet facilities and water. North Harbour Mountain Bike Track offers a trail loop almost 6km in length, suitable for beginner off-road riders / families. It has a gentle gradient and generally smooth surface with some obstacles such as roots, logs and rocks. This track is suitable for beginner mountain bikers with basic mountain-bike skills and off-road bikes.

North Harbour parkrun: 7am, every Saturday. Free 5km cross country run / walk around the Caboolture River in our Heritage Park, all ages and abilities welcome!

Sunrise Yoga in the Park: 8am every Sunday (7am in summer), North Harbour offers a free yoga class to suit all levels in Reflections Park. Beginners are very welcome, for more information please click here.

North Harbour Café (located in the Sales Centre building, next to a very popular kids playground) is also open every weekend for hot and cold drinks, breakfast and lunch plus Friday Burger Nights.

Five Things to Remember to Include in Your Home Buying Checklist!

Home Buying Checklist

Buying a home is a huge decision as well as a serious financial investment and commitment – and for the majority of people, it’s the most expensive purchase we’ll ever make. There’s a lot to consider pre-purchase, so it helps to make a home buying checklist at the very start of your property journey, to ensure you don’t forget anything important.

checklist before buying home near Brisbane

So, we’ve put together a quick list of five things to include on your checklist before buying a home.

1 – Save Your Deposit

The first step in buying a house is to save up the deposit which is usually 10% of the total purchase price. While you’re saving you can start researching property prices, areas and home loans and also check if you are eligible for the First Home Buyer’s Grant. Remember that you will also need money for expenses on top of your home purchase such as legal and conveyancing fees.

2 – First Home Buyer’s Grant

First homes buyers in Queensland are eligible for a grant to help them build their first property (must be brand new, not an established home). To find out if you are eligible and what the grant involves check our first home buyers guide here. This is vital to add to your checklist before buying a home near Brisbane. Don’t miss out on free money, you might be able to afford your first home sooner than you think.

3 – Check out property prices, get to know the market

It helps to know if property prices are rising or falling in the area, so check pricing trends with the Real Estate Institute of Australia and look on real estate websites such as Realestate.com.au and Domain.com.au to get an idea of what things are worth. This is a good time to review the benefits of building a brand-new home versus buying an established home in your chosen area.

4 – Shop Around for Home Loans

The home loan industry in Australia is extremely competitive, so it definitely pays to shop around. Making the right home loan choice can save you thousands of dollars over the life of your loan, so you need to get it right. Each home loan has its own sets of terms and conditions, so make sure you work with a broker you trust and that you fully understand the details of your mortgage. For example, does your mortgage have a redraw facility? Will you be able to pay out your loan early by making extra payments? Are you able to pay fortnightly, monthly or weekly? When in doubt, find out – no-one enjoys an unpleasant financial surprise.

5 – Location Check

It’s an obvious point but can easily be forgotten, that once you buy, chances are you’ll be living in one spot for several years, so check that the location you want to move into has what you need. For example, if you buy your dream home but you’re working two hours away and not spending much time at home as a result, that dream might turn sour pretty quickly. So, visit the area plenty of times, get to know what’s available and take your home buying checklist with you to update as and when.

North Harbour’s suburb of Burpengary East is one of Brisbane’s best value suburbs. It’s close to shops, schools, transport, entertainment, sporting facilities and restaurants and has a great community feel in a semi-rural area. It’s located halfway between the Sunshine Coast (30 minutes to Caloundra) and Brisbane CBD (45 minutes depending on traffic) in the very sought-after northern corridor.

North Harbour offers plenty to do in a great family-friendly neighbourhood. Not only does North Harbour hold a free cross-country parkrun on a Saturday, free Yoga in the Park on a Sunday and Cam’s boot camp on weekdays and Saturdays (click here to find more details on our Events page), we’ve also got a café and four popular neighbourhood parks including a dog park, mountain bike trail, weekend dining destination Bite Markets at North Harbour and our $3m Heritage Park will soon be complete.

 

Find North Harbour

home buying checklist

The North Harbour team is on hand every day to help you through the purchasing process. Our Sales and Information Centre & Display Village is open seven days a week, 10am-5pm. Located on the corner of Buckley Road and Fraser Drive in Burpengary East, our 33 home Display Village is an excellent place to do research for your home buying checklist as it showcases brand new designs from 17 of Australia’s best builders including:

  • Bold Living
  • Burbank Homes
  • Coral Homes
  • GJ Gardner Homes
  • Hallmark Homes
  • Homes by CMA
  • Integrale Homes
  • McLachlan Homes
  • Metricon Homes
  • OJ Pippin Homes
  • Oracle Platinum Homes
  • Orbit Homes
  • Pantha Homes
  • Stroud Homes
  • Stylemaster
  • Sunvista Homes
  • Valeco Homes

We also have new Terraced Homes by Metricon TownLiving located opposite Habitat Park and wetlands which are perfect for an easy lifestyle.

North Harbour is the winner of the UDIA Award for Best Residential Subdivision in Queensland and is EnviroDevelopment Accredited. To find out more please contact us and to keep up to date with the latest news and info, including our regular events, please sign up for our email updates and find us on Facebook and Instagram (@northharbourliving).