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The rent-vs-buy question isn't as simple as comparing a monthly rent cheque to a mortgage repayment. True ownership costs include mortgage repayments, council rates ($1,200–$2,500/yr), water ($800–$1,200/yr), building insurance ($1,500–$3,000/yr), maintenance (budget 1% of proper
For the first 5 years, renting in Sydney is often cheaper month-to-month due to the high entry costs and large mortgage on a $1.4M median house. However, if you stay 5+ years and prices grow at historical averages (4–5% pa), buying overtakes renting in total wealth accumulation. The key factor is your time horizon.
Most lenders require a minimum 5% deposit, but 20% avoids costly LMI. For a $700,000 property, that's $35,000 (5%) to $140,000 (20%). First home buyers may access the Home Guarantee Scheme with as little as 5% without LMI. Use our borrowing power calculator to estimate your capacity.
Yes, significantly. If the cash rate drops from 4.35% to 3.35%, variable rates could fall to ~5.4%, reducing monthly repayments on a $560,000 loan by roughly $360/month. This shortens the break-even period and strengthens the case for buying.
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