Moving to a new city is one of the biggest transitions you make in your life. Whether you have moved domestically before or relocating for the first time to a big city like Melbourne, the process can be challenging and stressful.
You have to manage multiple tasks simultaneously and make big decisions like where to work, which schools to select for your children, which removalists in Melbourne to book etc. However, before you start thinking about these things, you must understand what would be better for you – rent or buy a residential property in a new city? It is a significant decision that requires serious contemplation.
To help, here is a complete guide outlining the advantages and disadvantages of renting and buying property in a new city and things to consider while making a choice. Read on to also find useful information regarding the median rent and property prices in Melbourne.
Getting a house or unit in a new city is a significant financial commitment, and you need to be prepared for it. If you consider this option, then here are the pros and cons of buying real estate in a new city.
• Purchasing a house or unit anywhere provides a greater sense of stability and security
• You get a place that you can personalise and make a haven for yourself and your family
• When you buy a property in a new city, you don’t have to worry about bond repayment, finding a new place to live at the end of tenancies, changing utilities regularly, and more.
• If you were the owner of your previous residence, renting would feel unnatural and a step backwards. Buying a new home would be natural and more gratifying.
• Buying a house or unit is costlier than renting. Your saving can take a huge hit because you have to pay for travelling, removalists in Melbourne, insurance, mortgage and much more.
• It is harder to find a place to buy than a place to rent. It will require you to invest more time, energy, and resources besides money.
When moving to a new city, many people consider renting a property to live in rather than buying one. If you are thinking of this option like many others, here are the benefits and drawbacks of renting real estate in a new city.
• You have more options to choose from, as in any property market, the number of properties available for leasing is usually higher than the number of properties available for buying.
• You can find a house or unit to live in temporarily and settle in the new city before making major financial decisions like buying a home.
• You can find a suitable home near your workplace and the catchment zone of schools you want to enrol your children in. What’s more, if you are stuck in an unsuitable neighbourhood, you can move elsewhere.
• Renting a home in a new city has its drawbacks, especially if you are leasing a property short term. You and your family may not be able to settle properly due to the stress of having to move after a few months.
• You have to worry about paying the bond, maintaining a good credit score, depositing rent every week, finding good removalists in Melbourne, and much more.
Whether you should buy or rent residential real estate in Melbourne depends majorly on your household income and how much you are willing to spend. Besides managing the expense of relocation, you need money for hiring professional removalists in Melbourne, renting a storage unit, travelling, and much more.
To help make the decision easier for you, here are the median property rates for buying or leasing in the city. According to data available on the AIHW housing data dashboard, as of February 2021:
• For houses, the median property value is $829,509, and the median property rental value is $420 per week.
• For units, the median property value is $582,833, and the median property rental value is $385 per week
• For other forms of dwellings, the median property value is $717,767, and the median property rental value is $400 per week
For people with limited monetary resources, the choice is easier to make, and they go with renting a property in a new city. However, when you can opt for both options, it becomes confusing.
• You can opt for a rented place when you are unfamiliar with the surroundings and moving alone or want to live with a roommate to share expenses. Additionally, renting would be best for people looking for jobs or moving at short notice.
• Choose to buy when you have the financial means and moving with your partner plus children. It is also a good choice if you know the city, settled career-wise and sure about living in the city for years to come.
Moving to a new city is challenging and stressful, but it can be necessary for various reasons. Whatever these reasons are, it is wise and practical to plan everything from choosing to rent or buy a house in a new city to booking removalists in Melbourne to manage your relocation. Use this guide to make the former decision easier and the best for you and your loved ones (if they are moving with you).