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Waiting to buy isn't free. Every month you delay, three costs accumulate:Rent paid: At $600/week, you pay $31,200/year in rent - money that builds zero equity. Over 2 years, that's $62,400 gone.Price growth risk: If property prices grow at just 4% on a $700,000 target, the proper
In most cases, buying now may be beneficial if you can manage the repayments. Waiting for lower rates sounds logical, but lower rates typically increase demand and push prices higher. You can refinance to a lower rate later, but you can't undo price increases. Run the numbers using our mortgage repayment calculator at both current and expected future rates.
At 4% price growth on a $700,000 property, the purchase price increases by $28,000 in 12 months. Add $31,200 in rent paid, and waiting costs roughly $59,200 in total. Even if you save an extra $24,000 during that year, you're still ~$35,000 worse off. Waiting only wins if prices fall by more than the rent you pay.
It depends on how long saving the extra deposit will take and how fast prices are growing. If it takes 2 years to go from 10% to 20% and prices grow 4%/year, the LMI saving of $15,000–$25,000 is offset by the $57,000 price increase. Use our LMI calculator to compare scenarios.
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