Now is a great time to buy a home. With the rents across Australia getting harder and harder to find, and increasingly expensive, buying your own home can actually end up saving you thousands of dollars a year.
Where You Live Affects How Much You Will Save
According to a recent report there are 74 different Australian suburbs where it is actually cheaper to own your 
own home than to rent. The amount of money that you will save by having a place to call your own varies from as little as $.42 to as much as $3877 a month. There is also a big difference between the states and what area will save you the most money when you buy a house instead of renting. Victoria offered the least amount of savings averaging only $32.96 saved a month, while in Western Australia new home owners can expect to save as much as $916.10 by owning a home instead of renting.
Factors That Affect The Price Of Renting Verses Buying
One of the key factors that influenced whether it is cheaper to rent or buy was the decline in property values over the last year and an record low interest rate. Add to this the fact that rental prices have been steadily rising over the last few years and you can see why many people are deciding to become new home owners.
Pay Yourself: Buy A House, Build Equity
Another important reason to consider purchasing a home instead of renting is to build equity. When you are renting you are simply paying someone else’s mortgage for them. Why not take that money and put it into your own pocket instead? That way your money will work for you and not for your landlord.
Property Options Australia
Property Options Blog © 2006 – 2009
Hi Sean,
One of the big reasons to buy a home rather than rent is that you’re building an asset for the future. If you buy a home and pay it off; it will be a nice nest egg for your retirement.
And, you can use the equity in your home to add value by renovating your home or even use it to purchase another one. If you rent, you’re giving these benefits to someone else.
Interesting statistics. I know of a couple of mining towns in Western Australia that may have diluted how the results may have been interpreted. Collie for instance…where you could buy a cheap house for around 200k and rent it out at $500 a week to the companies…great profit but not the norm.
Renting pays off someone else’s mortgage .true. Buying pays interest to the bank. A lot of interest…..your total repayments (including the interest) sometimes doubles the initial principle of the loan. Both ways sees the home occupier lose a lot of cash.
You wanna help an individual repay his loan by renting, or do you want to support the pay-packets of banks. Both ways you can save money, saving while renting, or when buying hoping the property increases in value .which is a surer bet?