Home Buyers' Resources

Rent vs Buy Comparison

Do you think your rent payments would be better put towards paying off a home loan? Before working out the financial benefits, here are some other factors you should take into consideration:

Renting Renting Disadvantages
  You are not responsible for maintenance costs You have little say in the upgrading
  Renting may be cheaper in the short term (this will depend on a financial comparison - see below) Rent can be increased in line with CPI
  You can move easily by giving a few weeks notice You can be asked to vacate if the owner elects to move in, or sells the property with vacant possession
Buying Properties generally increase in value over time, increasing your wealth You will need to meet the cost of maintenance and repairs to the property
  You can change the property to suit your tastes You will have other costs such as Council Rates, Water and strata levies if the property is strata titled.
  Your loan eventually is paid off effectively reducing your living expenses as you are not paying rent If you need to move, you are less mobile
  Sense of stability and being part of a community