Grappling with this question is very real for many in our region. Often the key issues which should be taken account of are overlooked. Of course the fundamental of the $ amount which is available and affordable is the baseline in either decision. 

However, two key issues which are critical from this start point are; the length of time it is likely the dwelling will be home for the decision makers and the likelihood of any annual capital gain. If it is uncertain regards likely length of time of residence, or known to be relatively short (say less than 12 or 18 months) with low chance of appreciable capital gain then renting if it is available for the amount affordable is the favoured option. 

Conversely if length of intended residence is longer term and the chance of capital gain over that timeframe is real then buying - if mortgage funds are available - makes sense. In that instance the challenge is to find a suburb, a street, or possibly a specific property where the capital gain aspect has yet to really gain momentum and the potential is yet to be realised. This is worth spending time on and can be time well spent. Want help with this?

Talk to EVES now.

Ross Stanway
CEO