Rent vs buy
In an RP data report, they found that ‘it is cheaper to RENT than buy in 93% of locations’ throughout Australia.
That means there are only 388 localities out of 5,386 where it is cheaper to buy than rent.
The next time you have a client who is looking to buy a property to live in, they are most likely going to be paying more in repayments than if they lived in the same property and paid rent.
I have been a strong proponent of renting where you want to live and buying an investment in a good growth area to get a foot onto the property ladder.
In many cases the area you want to buy in might not have the best growth prospects, so your client would be saddled with a large mortgage on a poor performing asset.
There are some obvious downsides to renting, such as the uncertainty every year of having to move or the classic of not being able to put a nail in the wall to hang the family portrait, but from a lifestyle and financial position renting seems to be the better choice