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.
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.
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.