The evidence is clear that Brisbane’s housing market is going from strength to strength, and that now is a better time than ever to own real estate in the river city.
However, our strong median house prices and staggering suburb growth rates can make it harder to achieve home ownership.
If you’re wondering whether to rent or buy a house in Brisbane, there could be an abundance of reasons as to why you’re tossing up this critical question. You may have rented for years and are desperate to secure your own Brisbane real estate in the area you love but are consistently outbid by its hefty price tags. Or, you may be looking to downsize, and considering whether it’s worth going through the process of purchasing a home again or if it’s just easier to rent.
Each option has some serious advantages and disadvantages, such as owning your own home without the restrictions of a landlord but having to settle and buy in an area a little further afield from your preferred suburbs.
We’ve hashed out some specific advantages of each option to save you the stress.
Advantages of buying a house in Brisbane
When you own a home, you’re given much more flexibility when it comes to what you can do with it. If you’re sick of having to get your landlords’ approval for even hanging up a painting, you’ll love the freedom of owning your home. You also don’t have to worry about things like pets and whether you’ll get that dreaded bond return!
A mortgage is a form of enforced savings, making better use of your money by putting it into your mortgage rather than spending it. If you aren’t wise with your income, buying a house is certainly one way to become more financially savvy. Think of it this way – your mortgage payments are going towards paying off your own property, rather than your landlord’s.
At the end of the day, owning real estate is a considerable asset to help build your wealth. Providing you choose the location and home wisely, your investment is likely to grow in value over the long term.
Breathe easier knowing that you aren’t at risk of having to move due to your lease period finishing, your rent increasing or your landlord choosing to sell. You can put roots down in an established community, knowing that you have as many years as you choose to stay in your street.
Advantages of renting a house in Brisbane
In the short term, renting may be the cheaper option depending on the area you live in. Mortgage payments can weigh on your wallet, and renting can provide a great opportunity to save up for travel, starting a family or investment purposes.
Ongoing or unexpected costs such as general maintenance and repairs are all covered by your landlord, making renting a great, easy option if you’re living out of home for the first time.
If you can’t afford to buy in the area you want to live in, renting can be a great lifestyle choice. On the reverse, if you decide after a few months that you don’t love the area you’re renting in, it’s a lot easier to move than it would be had you purchased a home in the area! Renting provides great flexibility if you’re in short term career contracts, looking to move overseas in the near future, or simply don’t like the sound of commitment outside of a rental lease agreement!
Renting allows you to diversify your investments, meaning all of your savings aren’t going towards a singular asset – your home. If you’re smart with your money, renting enables you the opportunity to use your savings across a broader range of investments.
Wouldn’t it be amazing if there was a third option, providing a happy medium between buying and renting?
Let us introduce you to the term ‘rentvesting’.
Popular with millennials priced out by the suburbs they’re renting in, yet still eager to buy a house in Brisbane, rentvesting is a smart way forward. Rentvesting refers to buying an investment property while renting in an area out of your purchasing budget. Rentvesting is tax effective, as the mortgage and other costs associated with owning an investment property are tax deductible. It allows you to get a foot in the door of the property market by purchasing real estate in an area they can afford, while living in the area they desire. The goal is that income from the rental breaks even with mortgage repayments, allowing you to live the best of both worlds and rent with all its perks, while owning a considerable investment asset.
If you’re tossing up between renting, buying or ‘rentvesting’ in Brisbane, talk to one of our Place New Farm agents today.
If you’re considering renting or buying a house in Brisbane, the suburb of New Farm has a lot of great properties for rent and sale. To learn more about New Farm, download your free suburb report today.