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Is It Better To Rent Or To Buy?

Culture, economics, the property market and a ton of other factors are influencing factors to this question. Typically, when Australian’s speak about the Australian dream, they are referring to owning their own home.  Some are of the views, that it is better to pay off your own mortgage and someday have a property which belongs to you!  Every person has their own view and dreams that will influence your decision.  Owning your own home is about making a lifestyle choice which has implications to your day to day life.

 

The table below offers some advantages and disadvantages that may be useful, to consider this question:

ADVANTAGES

Renting Owning
  • No long-term financial commitments to worry about
  • No need to save for a deposit
  • Remain financially free, no debt or mortgage
  • Freedom to move around freely without costs of buying and selling a property
  • All repairs and maintenance are paid by the Landlord
  • Even when you cannot afford to buy in an area you can afford to rent
  • You can determine the level of rent that you pay over time but you have no control over the interest rate of a loan

 

 

 

  • You channel your rent money into the ownership of a property
  • Owning a property allows you to financially benefit from increased property values. Over time, increased equity can be used to buy another property
  • Any improvements in your property add value to the property you own
  • Changing address is entirely up to you not the Landlord
  • You don’t need approval to have pets
  • If required it can be sold and turned into cash relatively fast
  • Equity achieved over time is yours to keep
  • You can hang pictures wherever you like
  • Someday you have an asset you can leave to loved ones

DISADVANTAGES

Renting Owning
  • You are vulnerable to the rental market. The less properties on the market the higher the rent
  • The term of your lease restricts your ability to move quickly if circumstances change
  • The Landlord chooses when it’s time to move
  • Restrictions on keeping pets
  • You are restricted in terms of the improvements you can make
  • Any investment you make on the property or the gardens are left behind if the Landlord wants the property

 

 

 

  • Long term commitment associated with the responsibilities of a mortgage
  • Vulnerable to interest rate fluctuations that if increase quickly can reduce funds available
  • Costs of buying and selling can be costly
  • You need to budget for ongoing expenditure like rates, water, and repairs and maintenance
  • Your budget for purchasing will determine the suburb you live in
  • Economic situations can drastically influence the value of your property
  • If property inflation is low, other investments can produce better returns
  • If you lose your job, you may find it difficult to make your repayments

Your income and the income of your spouse or partner also factor into the equation.  The higher the income, the easier to afford a mortgage and you will save a deposit much faster.  Higher incomes provide flexibility which fundamentally reduces your risk and exposure.

  • All
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  • Pre-Approvals

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Why Choose Brisbane Home Loans

You're In Good Hands

Brisbane Home Loans is all about good old fashioned personal service without exception.

We Find The Right Deal For You

We take the time to listen to your needs and then search the market for the best products that satisfies your needs at the lowest possible cost to you.

Ongoing Comittment

We continue to work for you after the deal is finished, ensuring that we asess any new offers that become available which may improve your current deal.

One Stop Lending

We give our clients access to Personal Loans, Home Loans, Investment Loans and Commercial Loans.  You always only deal with on person for all your lending services.

How We Work With Our Clients

We can meet clients in our office, in their home, their office or the local coffee shop. Our initial interview will helps us understand the clients needs in the short, medium and long term so that we can find the best possible lender for your loan.

The world of financing continues to be more and more complicated. Our Lenders have experience in finding the right product to meet the specific needs of each of our clients.  During this phase, we identify two to three options that may be suitable.

Our Lending Specialists will present to you a number of options available outlining  the differences, benefits and downfalls of each option presented. Our preferred option and reasons why, we consider this the best fit for you will be clearly explained.

Our Lending Specialists work with our clients to have all documentsation signed, submitted to the lending institution and processed through to approval.

We pride outselves on client service which is why our Lending Specialists establish a reasonable review timeframe where they touch base with our Clients to ensure everything is working as planned.  During this review, the client is made aware of any new financing options in the market.

Brisbane Home Loans is not about one off loans. We truly care about our clients, which is why we stand by their side beyond the completion of the loan.

What Does A Mortgage Broker Do

Listen and Evaluate Your Needs
Calculate How Much You Can Borrow
Compare Options Available to You in The Market
Provide You Expert Advice
Do All The Leg Work
Obtain Pre-Approval For You
Create A Plan For You To Ensure Your Always Getting The Best Deal
Most Importantly We Provide This at No Cost To You

Testimonials

Request a call Back.

Would you like to speak to one of our financial advisers over the phone? Just submit your details and we’ll be in touch shortly. You can also email us if you would prefer.

Immediate Response:

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Content Of blog

  • All
  • First Home Buyers Loan
  • Home Loans
  • Investment Loans
  • Pre-Approvals

Guide to your loan repayments through Covid-19

Circumstances associated with Covid-19 have certainly created confusion as clients are hit with mixed messages with respect to interest rates, the economy, property prices, valuation and more. Unless you have a crystal ball, you will need to make decisions based on the best information available and in consideration of your own personal financial situation.  This

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Why Choose Brisbane Home Loans

You're In Good Hands

Brisbane Home Loans is all about good old fashioned personal service without exception.

We Find The Right Deal For You

We take the time to listen to your needs and then search the market for the best products that satisfies your needs at the lowest possible cost to you.

Ongoing Comittment

We continue to work for you after the deal is finished, ensuring that we asess any new offers that become available which may improve your current deal.

One Stop Lending

We give our clients access to Personal Loans, Home Loans, Investment Loans and Commercial Loans.  You always only deal with on person for all your lending services.

How We Work With Our Clients

We can meet clients in our office, in their home, their office or the local coffee shop. Our initial interview will helps us understand the clients needs in the short, medium and long term so that we can find the best possible lender for your loan.

The world of financing continues to be more and more complicated. Our Lenders have experience in finding the right product to meet the specific needs of each of our clients.  During this phase, we identify two to three options that may be suitable.

Our Lending Specialists will present to you a number of options available outlining  the differences, benefits and downfalls of each option presented. Our preferred option and reasons why, we consider this the best fit for you will be clearly explained.

Our Lending Specialists work with our clients to have all documentsation signed, submitted to the lending institution and processed through to approval.

We pride outselves on client service which is why our Lending Specialists establish a reasonable review timeframe where they touch base with our Clients to ensure everything is working as planned.  During this review, the client is made aware of any new financing options in the market.

Brisbane Home Loans is not about one off loans. We truly care about our clients, which is why we stand by their side beyond the completion of the loan.

What Does A Mortgage Broker Do

Listen and Evaluate Your Needs
Calculate How Much You Can Borrow
Compare Options Available to You in The Market
Provide You Expert Advice
Do All The Leg Work
Obtain Pre-Approval For You
Create A Plan For You To Ensure Your Always Getting The Best Deal
Most Importantly We Provide This at No Cost To You

Testimonials

Request a call Back.

Would you like to speak to one of our financial advisers over the phone? Just submit your details and we’ll be in touch shortly. You can also email us if you would prefer.

Immediate Response: