This is a question that people always ask. It is similar to the egg or chicken - What came first? #buy #rent #homeowner #homeloan #firsthomebuyer#newhome
Renting might seem more appealing with soaring housing prices in Sydney and Melbourne but don't expect it to be cheaper than buying.
While investors have boosted the supply of rental accommodation and reduced the rate of growth of rents, rents are still growing in the two major cities, Housing Industry Association senior economist, Shane Garrett said.
Real Estate Institute of NSW president Malcolm Gunning said in many cases, "mortgage repayments are cheaper than rental".
"Take for example a one-bedroom in inner city Sydney which costs about $700,000. At about a 4 per cent fixed mortgage rate, you pay about $580 a week," he said. But rents in these areas are about $650 to $700.
So its up to you really. It is probably cheaper to buy a home in the long run but you will be tied down with a mortgage for a couple of decades. Talk to Madhu on 0425 341 086 to discuss your options and the deals available.