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To rent or buy: No such thing as one-size-fits-all solution

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Australian Broker | 29 Jan 2013, 04:00 AM Agree 0
While it may be cheaper on average to buy in most Australian cities, one aggregator says that's not the only thing for FHB's to consider
  • PeterT | 29 Jan 2013, 11:59 AM Agree 0
    When potential buyers have assessed how much it costs to rent vs buying, they should then look at what the future cost of a mortgage will be (assume a long term average of 7%) and compare that to what renting will continue to cost if rents increase by 5% per year. Also factor in what a fully owned house will be worth at retirement, compared to being forced to rent when you can't work.
    Renting is usually cheaper in the short term, but unless you're investing the savings, buying is almost certainly more cost effective in the long run.
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