Today we look at the rent vs buy calculator in Australia, and we answer the question of renting vs buying and which is better for you. This renting vs buying calculator breaks down the different scenarios to look at how much it would cost you to purchase a home, or if you rented and invested the difference (sometimes called Rentvesting)
This calculator uses your individual situation and calculates whether it is better for you to purchase a property or to rent and invest.
- Renting Vs Buying Calculator
- Renting – Pros and Cons
- Buying – Pros and Cons
- So what’s the answer?
- More First Home Buyer Resources
If you purchase a house, it uses the average mortgage repayments and costs of running the property, versus if you were to rent somewhere. Whichever strategy leaves you with the most surplus income financially makes more sense to do!
Renting Vs Buying Calculator ⬇️
Whats your current income?
What state do you live in?
Which of the following best describes you?
What’s your current income?
If you were looking for a home, what budget do you have in mind?
If you were to rent, how much would you spend per week?
Rent or Buy:
- This page shows you an approximate idea about your overall cash flow from either buying or renting. This is the financial metric that determines what strategy will leave you with the most after tax income while also taking into consideration what percentage of your incomes you would spend on buying a property or renting. Therefore for some, it may be better for some of you to buy or for some of you to rent.
- The ultimate decision does come back to you on what your priorities are in life, having somewhere to call your own or moving around while being able to build wealth.
Moving rental properties? Chances are you’ve likely weighed up the possibility of buying a home against signing another rental agreement. Whilst some believe rent money is dead money, the issue isn’t so black and white. It pays to look at both options before making the final decision.
Renting – Pros and Cons
Whilst renting isn’t just an option for those who cannot afford a deposit on a home. Deciding to rent or buy is a decision relative to the circumstances you’re currently in.
- ✅ Any maintenance issues are the responsibility of the property owner.
- ✅ Moving is a relatively easy process. You don’t have to wait for your house to sell before you can take a job offer in a new city or move to a different neighbourhood.
- ⛔️ It’s always possible that a property owner will decide that they no longer want to rent to a particular tenant. Knowing that your ability to stay comfortable in the place you call home is up to someone else can be nerve-wracking.
- ⛔️ Competition in the real estate market has made renting more common. This competition means that rent prices continue to increase.
- ⛔️ Renting doesn’t allow you to own an asset.
- ⛔️ You can’t make alterations to the property as you see fit.
Read More: Rentvesting, the pros and cons of it all.
Buying – Pros and Cons
Just like renting, there are some pros and cons associated with buying a property, including:
- ✅ Mortgage payments associated with a fixed interest rate are set, so you’ll be able to budget your housing repayments without worrying about an increase in the overall amount owed.
- ✅ You retain the right to make modifications to your home without having to ask permission of a landlord.
- ✅ If you have trouble saving money, paying off a mortgage acts as a forced savings plan. You’re buying an asset that can be sold in the future.
- ⛔️ The price of buying a home may make it impossible for you to live in your desired location.
- ⛔️ Buying a home can be restrictive should you decide that you want to move.
- ⛔️ Anything that goes wrong on your property is your responsibility. You’ll have to cover the costs when maintenance issues crop up.
Read More: How to Buy a House in Australia
So what’s the answer?
Which one is right for you? There is no right or wrong answer when it comes to deciding. It really depends on your individual situation.
Speak to our team of experts today
We are experts in getting home loans approved, and work with several banks that specialise in helping first home buyers.
If you would like to chat about buying a home and need finance, speak with one of our experienced mortgage brokers to walk through the next steps with you.
At Hunter Galloway we help home buyers get ahead in this competitive market and we give you the actual strategies that have helped other home buyers like you secure a property when there have been 5 other offers on the table! Enquire online or give us a call on 1300 088 065.