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Buy or Rent? What the Current Climate Says to Do with Your Money in 2021

5/23/2021

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Buying or renting – while it has always been a big decision between the two, there is usually one side that comes out stronger. In 2021 however, it is an even bigger decision – do you pay sky high rents or do you pay sky high property prices.

Interest rates are low – at the moment. While the Reserve Bank has noted that interest rates will likely stay low for at least the next three years, homeowners always need to be prepared for interest rates to rise. The issue is – with property prices so high, will those buying now be able to afford their mortgage repayments when interest rates rise?
​
The flip side is how long do you remain renting, dealing with increased rent and attempting to save a deposit while house prices rise around you?
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Photo by Erik Mclean on Unsplash

​​The Decision to Rent
For many people, the decision to rent really comes down to either not being ready to buy, or not being able to afford to buy, whether that be in the area they want to live or in general. While rent is often seen as dead money, many of those who rent for lifestyle and work reasons often have opportunities to become rentvestors – that is, rent where they want to live and purchase an investment in a great area that sees good levels of returns.

Let’s look at some of the pros and cons to renting.

Pro: With renting comes more flexibility. You can move from one place to another more easily as your lifestyle or work requirements change.

Pro: You don’t need to pay to upkeep and maintain the property, nor do you have to pay council rates and body corporate fees.

Pro: Weekly rent can be cheaper than a mortgage in many areas, particularly when those interest rates start rising.

Con: Stability can be limited as you don’t really have a say on how long you can stay in the property. The landlord can ask you to leave when your lease ends, or they can sell at any time.
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Con: Renting doesn’t allow you to build equity. Rentvesting is a good alternative that allows you to build equity, yet live where you want.
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Photo by Precondo CA on Unsplash
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​The Decision to Buy
We have all seen the auctions happening where older homes in prime locations are going for well over the reserve price; we have seen the sales figures of relatively moderate homes going for well over what they would have even a year ago. If you have made the decision to just leap into the market, your best bet right now really is to buy brand new. That may mean you buy further out of the CBD or perhaps a little further away from work, but it also means you generally aren’t competing with those who have money to splash around on properties going for well over what they are worth.

As with renting, there are some pros and cons to buying.

Pro: As long as your mortgage is paid, you can’t be evicted from your home. You don’t need to worry about rent increases, and broadly, you can do what you want with your property.

Pro: Properties tend to increase in value over time. Not all properties will increase as quickly as others, but if you sell in the right market, you should see a gain.

Pro: Every payment you make builds equity, giving you freedom in the future.

Cons: Buying can be a heavy hit on your finances. You need to consider whether your financial situation now, and in the future, can support home ownership.

Cons: Purchasing in a bad area or purchasing in an overinflated market could see you with a decrease in property value, and unable to sell your home for what you still have left on your mortgage.

Depending on where you live and your financial situation, it may be cheaper to buy, or it may be cheaper to rent. If you have made the decision to purchase a home, or you are considering rentvesting, a new home is a good decision.
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Elysian Apartments and Montane Kellyville provide good opportunities for new homebuyers, investors or those looking to re-enter the Sydney market, while The Hampton Shores in Port Macquarie is perfect for those looking to move to a regional coastal area. Find out more about Laurus Projects latest developments, and start dreaming of your new home.
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Sydney’s Best Value for Money Residential Suburbs [May 2021]

5/3/2021

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If you’ve been living in Sydney for a while, or even watching the Sydney property market from afar, you’re probably wondering whether there are any affordable suburbs left to live in. In an area where it seems like prices and demand have been going crazy for years, if you’ve been trying to enter the market, there’s every chance you’ve been dismayed and feel like you’ve been left behind.

But that isn’t the case; there are a number of suburbs within the Sydney region where you can still purchase a property that is affordable, and within commuting distance. Let’s take a look at the cheapest suburbs (by median price) within a 10km radius and a 20km radius of the CBD as well as those a bit further out.
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Photo by Jeremy Zero on Unsplash

​Best Value for Money Suburbs within 10km of Sydney’s CBD


​Looking to buy within 10km of the CBD? There’s a good chance you’ve looked until you can look no more but there are some little gems out there that will allow you to live close to the CBD without spending millions.


When looking this close into the CBD, the most affordable options are going to be apartments, and the following suburbs are a good place to start.
Suburb
Distance from CBD
Median House Price
Median Unit Price
Hillsdale
9km
$1,010,500
$596,750
Canterbury
10km
$1,315,500
$675,000
Arnecliffe
10km
$1,165,000
$676,500
Ashfield
8km
$1,513,740
​$692,500
Gladesville
9km
$2,000,000
$720,000
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Photo by Photoholgic on Unsplash

​Best Value for Money Suburbs within 20km of Sydney’s CBD


​Going just an extra 10km away from the CBD brings you plenty more affordable homes to choose from. That little extra distance gives you an opportunity for either a house or a unit depending on your lifestyle needs.
Suburb
Distance from CBD
Median House Price
Median Unit Price
Granville
19km
$807,000
$466,888
Guildford
20km
$830,000
$466,500
Yagoona
18km
$865,000
$580,000
Chester Hill
19km
$820,000
$510,000
Punchbowl
16km
$900,000
$497,500
Lakemba
13km
$940,000
$377,000
Wiley Park
14km
$847,500
​$390,000
Harris Park
19km
-
​$440,000
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Photo by iStock on Domain

​Most Value for Money Outer Sydney Suburbs


Not everyone needs to or wants to live within a close distance to the CBD, and for those people, there are plenty of options further out that are completely affordable. The suburbs we’ve listed below are spread throughout the west, south, and north of Sydney’s CBD.​
Suburb
Distance from CBD
Median House Price
Median Unit Price
Macquarie Fields
38km
$631,000
$430,000
Ingleburn
40km
$699,450
$432,500
Airds
56km
$480,500
-
Werrington
46km
$665,000
$412,500
St Mary's
45km
$632,500
$470,000
Colyton
43km
$650,000
-
Richmond
64km
$699,500
$467,000
Windsor
58km
$740,000
-
Campbelltown
57km
$600,000
$436,000
** Median prices as of March 2021

​While prices are going up and properties are getting snapped up quickly, there are options out there for buyers who are looking for homes that are still affordable for the average family.
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