If you are currently looking to relocate, you may be trying to determine whether to do property lease or purchase. It can sometimes be challenging to figure out which will work better over the long term. This can depend heavily upon your current financial circumstance and long term objectives.
There are a few advantages to property leasing. You are not liable for fixing things that may end up damaged if it is out of your control, such as broken pipes and other general maintenance. The landlord is responsible for resolving these issues at their own cost, which is advantageous to the occupant. Furthermore, leasing gives you a choice to vacate whenever you desire, and it is much easier to move around and relocate on demand. Although rental prices are beginning to rise back from the sharp COVID-19 decline, they still remain reasonably affordable. This is certainly more ideal for individuals who may be struggling to recover from the pandemic as they begin to get back into normal life.
As indicated by the Australian Institute of Health and Welfare, 32% of individuals who live in Australia are tenants. For some people, renting is their only alternative, but numerous individuals view purchasing as more reasonable in the long haul.
In regards to purchasing a property, the process might appear to be somewhat intimidating, especially since there are so many factors that go into making a decision, particularly to a first-time buyer. One of the primary appeals of purchasing instead of renting is that it is a great investment decision as it could provide significant returns in the long haul. Assuming that the buyer has good credit and can afford the upfront instalment on a mortgage, purchasing could be a preferable option. This is particularly appealing to those who are not looking to move in the near future and are searching for an investment opportunity.
Despite the fact that the housing market has steadily increased lately, the market is still leaning in favour of buyers. According to REA Insights, “more than half of homes will be cheaper to buy than rent over the next 10 years, at current prices.” This refers to the inner-west, greater part of Sydney and most of New South Wales.
The analysis also stated that “more than 80% of houses and almost all units outside of the most populous states are estimated to be cheaper to buy than rent”. With the RBA confirming that the official cash rate will remain at 0.10% for the foreseeable future, it has never been a better time to think about purchasing a home.
Making the best decision for your future may be difficult and will differ for everybody as it is subject to factors such as financial stability, way of life, location and preference. Get immediate assistance from our top agents at Strathfield Partners today to find out what is right for you.