8 Reasons to Rent in an Area Before You Buy In Australia 2022

8 Reasons to Rent in an Area Before You Buy

8 Reasons to Rent in an Area Before You Buy

When it comes to buying a home, it may be worth renting a home in your chosen area first before you part with your money and commit to purchasing a property. Here are eight reasons to try before you buy.

Renting versus buying has been a hot topic of debate for a long time. Which is better? Is paying rent simply wasting money? Are houses worth such a massive amount of money compared to other ways you could invest that money? Realistically, people will always disagree on this subject – usually, individuals base their opinion on their past home-buying decisions or future plans. In saying that, there is no ‘right’ way of thinking.

Australia is currently in the middle of a housing boom, and housing affordability is a big concern for many first home buyers. For many people, buying might not be an option yet. Renting is a perfectly valid way of living, and there are actually benefits to renting in the area you plan to buy before you do so.

8 Reasons to Rent in an Area Before You Buy

#1 You can’t afford to buy yet

‘Rent money is dead money’ is largely an obsolete saying now in Australia – it was coined in the past when houses were much more affordable. With the average Australian home now costing over $900,000, it is simply not an option for many people to buy a property until they have managed to accrue a significant amount of savings. According to a recent study from money.co.uk, the average Australian first-home buyer is 36 years old. This means that for most people, renting a home at some point is an inevitability. You need to contact property conveyancing Brisbane and get expert advice.

#2 You’re from a different state or country

You can read a million travel guides, social media posts, or articles. Still, nothing will ever be able to give you an accurate sense of living somewhere until you’re actually there. Say that you’re planning on moving to Melbourne CBD, after growing up in a small town in New Zealand. Even if you think you know what city life has to offer, you will still be surprised at the reality of it. The same goes for moving to Melbourne from Queensland or Perth – even though it’s the same country, the culture and community differ significantly between states. Before you commit to buying something, it’s best to see if you genuinely like the area first.

#3 Explore an area for what it has to offer on weekdays as well as weekends

Viewing a home doesn’t always give you a complete picture of the area. If your favorite suburb that you intend to buy in is somewhere you go to every now and then for a weekend lunch – you may not be aware of how busy and loud it can get on Saturday nights. Renting a property in the area before you buy will enable you to see what it’s like living in that suburb or street 24/7.

#4 You’ll see if the amenities near you are a good fit

It’s easy to take it for granted having access to nearby public transport or shops, so renting can give you a chance to evaluate what amenities are important to have nearby for you. This is particularly important if you’re considering a sea-change or tree-change move to a rural area. You might think having to drive 30 minutes to get to the supermarket will be a non-issue because you’ll only go once a week to shop, but is this really the case? If you rent a property in the area before buying, you may realise that you’ve become accustomed to being able to dash out for a litre of milk at 9pm on a Monday night. Having nearby amenities is usually a big drawing card for real estate in any area, so renting a property prior to buying will allow you evaluate whether you find the area that you’re considering buying in to be convenient.

#5 Public transport and traffic concerns

For most people, transport is vital to everyday life. Whether you drive or take a bus or train, it’s important to make sure that your daily commute to work is suitable from your home. It’s also better to live this out in practice rather than relying on Google Maps. Sometimes, the GPS will say it’s a thirty-minute drive, but in peak hour traffic it can end up being a significantly longer commute. Likewise, just because there’s a tram stop near your home doesn’t necessarily mean it will tick all your boxes as a way to get to work. It could run on a schedule that isn’t convenient for you or it could be uncomfortably overcrowded during peak times. If you’re able to rent in an area before you buy a property, it will enable you to clearly evaluate how you are able to best get around to access work, shops and friends, and this may affect where you choose to buy within an area.

#6 You can meet your potential neighbors

There are often pockets of communities that might be more friendly or more desirable that other areas, and often it’s difficult to spot these if you don’t live in an area. Renting in the area before you buy will allow you to meet the community of people that live in the suburb. Is there a noisy local teenage after-dark hangout? Which areas are quieter, or more vibrant? Is there always a party going on down the street? Are there certain areas that are less safe than others? If you meet the locals and get to know an area first, you will be well-informed when it comes to choosing a property to buy.

#7 You can do more extensive real estate research in the area

Sometimes, it’s just not the right time to buy a house in a particular suburb. While it’s not recommended to try to time or beat the property market, if house prices in an area have shot up by a crazy amount in a short period of time, it’s probably worth waiting for the market to resettle. If you’re considering buying a property, it’s important to engage a local property conveyancer, such as Jim’s Property Conveyancing to assist you with navigating the legal complexities of a real estate transaction.

#8 You have the potential to make a rent-to-buy agreement

An experienced property conveyancer can also help you with this one. Rent-to-buy (or rent-to-own) are lease agreements that allow the renter to purchase the home at the end of a pre-determined period. This will enable a renter to buy a particular property at an agreed-upon price. This sort of contract should be navigated carefully, but it can be an effective way for low-income families to get a foothold on the property market and get immediate access to a home. However, there can be some downsides to entering into a rent-to-buy agreement so it’s important to discuss this with your property conveyancer. In a rent-to-buy arrangement you don’t own any part of the property until the end of the leasing agreement, so if anything were to go wrong before then, you could potentially lose any money that you had already paid. As with any kind of property contract, it’s best to get a legal expert involved to make sure that you understand what you are committing to before you sign. You need to contact property conveyancing Melbourne and get expert advice.

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