Did You Know, Buying a Property Could Be Cheaper Than Renting?

Recent analysis shows that for more than a third of Australian properties, meeting mortgage repayments could actually be cheaper than renting.

For many Australians residents looking at purchasing a property, the recent rate hikes and inflations have diminished the dream of property ownership and made it feel like an unachievable goal.

Often the biggest obstacle in the way of home ownership is saving up for a deposit. However, once you’ve got that sorted, property ownership may be more in reach than you thought.

A recent CoreLogic analysis found that maintaining a mortgage was more economical than meeting the average rent prices in 518 Australian suburbs! In fact, in some suburbs, there were savings of over $900.00 a month. Crazy right!

Not to mention that with rental prices surging by about 10% across Australia over the past year and vacancy rates at a record low 1.1%, home ownership has possibly never looked more appealing!

So, how do you become a homeowner and quit paying someone else’s mortgage you ask, well we’ve got some tips to help you make the switch in a timely (and confident) way.

Its a Buyer’s Market, Take Advantage of It!

With fewer buyers out there looking to buy a property, you will have more negotiation power within your grasp.

Buying now or in the near future could mean you have less competition for people looking at available properties, sellers reducing their prices, and potentially sellers willing to negotiate various options in which you offer.

Although there have been recent rate hikes, even during the spring selling season which is usually a high buying time, we’re still seeing fewer buyers. In fact, compared to an average of 20 days last year, data shows the median number of days that properties sit on the market is now 35 days.

In response to this change, property prices are reducing. September data showed a 1.4% drop.

So, by shopping around in the right areas and putting your negotiator hat on, you may be able to purchase a home at a great price, making purchasing cheaper than renting.

Plus, most importantly, buying property is a great investment, and making mortgage repayments can create equity for you … instead of your landlord.

Can Mike help you get the process started? Absolutely! Learn More

Get on the Right Foot With Government Schemes

Saving a big enough deposit to buy your first property can be a bit of a slog. there’s no denying that. However, what if there was a way to sidestep the standard 20% deposit? And possibly avoid stamp duty too?

There are several government schemes you may be eligible for that can fast-track your process of buying a property by an average of 4 – 4.5 years.

The federal government offers low deposit, no LMI loans for eligible first home buyers, single parents, and regional first home buyers.

Also, all state governments (except South Australia) have first home buyer stamp duty concessions for those eligible. And you can stack these schemes together for more bang for your buck.

But the no LMI schemes are allocated on a first-come, first-served basis every financial year so you’ll have to move quickly to claim this option.

Unsure Where to Get Started From Here? Reach Out

If you’re keen to make the leap from renter to home owner, get in touch to chat about the next steps you need to take. Ensuring you understand your finances is the first step in making sure you’re eligible so why not have a helping hand to make sure you’re all set.

Reach out to me for a chat. 

I can help you find the right loan and provide helpful guidance that could increase your chances of succeeding the mortgage application process. While we’re at it, we can help you apply for any money-saving government incentives you may be eligible for. Let’s go!


Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.