To Buy Or Not To Buy… That Is The Question
The verdict is finally in!
With property prices soaring to all-time highs, along with our household debt levels; there has never been such a vexing question than whether to buy or rent.
For many looking to break into the property market, the problem actually starts with building a sufficient deposit. In today’s environment, saving a 20% deposit can take considerable time. In fact, RealEstate.com.au recently reported it would take 8.3 years for a single person looking to buy in NSW to save a 20% deposit. Meanwhile, property prices continue to rise during that time…enter the dreaded perpetual cycle.
Of course, for anyone wanting to buy property sooner rather than later there’s always Lenders Mortgage Insurance (LMI). Allowing borrowers to forgo the need to save a 20% deposit, LMI is often a popular way to achieve the dream of home ownership in a timely fashion.
So which is the best strategy? Postpone buying property until you save up a sufficient deposit without the need for LMI which can take years? Forgo saving a deposit and purchase your dream home now with LMI? Or maybe forget achieving the great Aussie dream of homeownership altogether and forever rent?
Well, thanks to a new Buy or Rent Calculator from Genworth, the verdict is in!
This calculator helps prospective buyers compare the benefits of three different scenarios:
- buying a property now using LMI, versus;
- delaying the purchase and continuing to rent and save for a 20% deposit, versus;
- renting and saving indefinitely.
The beauty of the calculator is that it provides a tailored outlook. Everyone’s situation is different and with the Genworth calculator you can punch in details specific to your circumstances to give you a view of each scenario. Why not give it a try!
To view the Genworth Buy or Rent Calculator click here.