Consumer News

Should you rent or buy?

27 June 2016

By Tim McKibbin – REINSW CEO

Housing is one of life’s necessities and deciding whether to rent or buy is one of the biggest financial choices you are ever likely to make.

If you decide to buy you will initially have to dedicate a large proportion of your disposable income to your mortgage as opposed to paying rent. 

However in time with the inevitable increase in rent the cost of your mortgage will, as a percentage of your income, reduce and become a more attractive cash flow option.

The downside if you decide to buy is you will have less disposable income in the early stages and have to sacrifice certain luxuries you may not be able to afford as a result.

Ultimately it comes down to your finances and lifestyle, and is a decision you should think long and hard about.