Renting on the Rise
Census data released by the Australian Bureau of Statistics has shown a massive 4% increase in renting across Australia, with nearly 31% of all people renting their home. With property prices continuing to grow in Brisbane, is renting the right choice for you?
There are advantages to both buying and renting. Renting is definitely cheaper in the short term, as you usually need a deposit of at least between 10-20% of a property’s price in savings before you even start to look at getting a loan.
However, buying a property means you have an asset that can grow in value, whereas with a rental, once you move out you’re basically back where you started.
Money Money Money
In a perfect world, everyone would have enough money to buy the things they needed when they need them. Clearly, this isn’t the case, and if you’re a younger buyer, you’re probably going to have to wait and make compromises.
If you have to buy now, consider maybe a more modest starter home away from the city and central suburbs. Though it’s not ideal, you might want to consider staying in a rental for the moment, and making a one year (or even five year) plan to save up whatever you can.
A Changing Market
All this is being reflected in the market activity as well. Though property ownership is still the Australian dream for a lot of people, that’s becoming less and less of an ideal.
Interestingly, in some European metropolitan regions, tenants are starting to sign five and ten year leases. Though this is still far from common over here, it could be a sign of things to come, with the Victorian government even investigating a proposal
to allow such long leases.
At the end of the day, there’s one big advantage to buying: it’s your biggest asset, and you can sell it when it’s time to move. But if you can’t afford it right now, there’s no shame in renting while you plan for your future. At LJ Hooker Sunnybank Hills, we have a wide range of affordable properties to both rent and buy, so no matter what you need, you can always talk to us to see what’s possible.