By Rachel Mann // Place Projects
As the Brisbane real estate market continues to thrive, the question looming for many locals is “should I buy or should I rent?”.
Depending on your personal circumstances, you may be at the common crossroad of wondering whether to pursue the Australian dream of owning your own home or living a more flippant lifestyle full of all the joys money can bring.
We sat down with property expert, Lachlan Walker, as he discussed important factors that may influence your decision.
Q. What are the pros and cons in buying versus renting?
Renting allows you to move locations quickly for whatever reason, whether it be cost, upsizing or downsizing, job or family commitments or simply a change of scenery.
You’ll also never have to worry about the cost of upkeep, maintenance or rates.
The downside is your money is ending up in someone else’s pocket.
That’s probably the greatest reward of owning your own home.
The money you’d outlay through rent each week goes into paying off your own investment instead.
Buying also eliminates any financial risks related to tenants vacating the property or missing payments.
Similar to renting, owning your own home provides flexibility, but on a more aesthetic level - you can make changes to the property without seeking a landlord’s approval.
The downside to owning your own home is the long-term commitment, financially and physically.
You’re fixed in your ability to move and change your situation and limited financially as you’re locked into a mortgage.
The holidays, nights out and shopping splurges become few and far between.
So overall, it’s not a question of buying or renting; it’s a question of your personal circumstances and what you want out of life.
Q. Do you recommend purchasing an apartment or house?
This is generally a lifestyle dependent choice.
Typically, the apartment owner is seeking a low maintenance property, usually located in an active city centre that’s close to infrastructure, retail and dining precincts and transport options.
The homeowner is fulfilling the dream of having a backyard, plenty of space for entertaining, room for pets and growing a family.
The choice comes down to affordability, where in most entry-level cases, an apartment is the obvious choice, particularly if the buyer is looking for a desirable inner-city location.
Apartments usually become someone’s first investment property, with the advantage of having young professionals or uni students renting these style of properties.
More often than not, a house is a primary residence in the later stages of life.
Q. What’s your advice to first home buyers?
Most first home buyers are current renters looking to make the next life step, but it’s important to keep in mind that purchasing a house or apartment is an important investment.
First and foremost, it’s crucial to seek the right advice to ensure you invest in the right place.
Keep in mind, you’re aim is to achieve positive capital growth so when you sell your first property, you can reinvest any money made into something else.