The age-old question; rent or buy?

The Sunshine Coast Daily 19th April 2013.

THE great Australian debate: to rent or buy?

Lower interest rates, easing prices and improved affordability are all positive signs for Australians considering purchasing property. In fact, these aspects can often be the tipping point for previously content tenants to consider choosing home-ownership over paying rent.

Mortgage Choice investigated the rent versus buy equation and offers some helpful guidance to anyone considering their options in this regard.

"With changes to government incentives for first homebuyers and weaker-than-expected consumer confidence around personal finances, it is not surprising that many renters have recently closed the door on the idea of home-ownership,'' Mortgage Choice franchise owner on the Sunshine Coast, Linda Ireland said.

"However, those who are dedicated to the cause often find it is within reach, sooner rather than later.

"Making your first property purchase requires careful consideration of a range of aspects and detailed planning before you even commence the hunt, let alone think about applying for a home loan. Tenants who know their financial limitations and options are more likely to confidently leave the rental roundabout.

"Recent Mortgage Choice research shows that, for houses in most capital cities, the weekly repayments on an average home loan could be less than or only slightly more than the median weekly asking rent.

"For example, in the December quarter for a house in Brisbane the median weekly rent was $390 per week. Brisbane's first home buyers on the other hand paid only $375 per week on a 30-year average loan of $274,100, at a basic variable interest rate of 5.9%.

"Of course, home-ownership costs such as land tax, strata fees, council rates, water consumption, insurances and maintenance need to be factored into the equation, but the small difference between rent and loan repayments within some areas is encouraging for many potential buyers.

"It is important to keep in mind that at present, there is higher than average property listings and lower than average competition between buyers. But it is a cycle, and as positive consumer sentiment grows so too will property demand, making it a good time now to do your sums.

"First homebuyers should explore their property and finance options carefully before making a quick decision to buy.

"If the idea of paying your own home loan instead of your landlord's is too good to refuse, then put a property purchase plan into action, get professional home loan help and make 2013 your year."