Buy or Rent 2021
Buy or rent 2019?
If you asked a property expert eighteen months ago, or even just twelve months ago, whether or not they thought it was better to buy or rent a property the answer would have included the standard whiteboard checklist of pros and cons.
Expert pontifications would have included the standard responses on both sides. Renting is a great option because it’s generally cheaper, you remain flexible to change accommodation as required, no upkeep expenses. Buying might create a little short-term pain (initial deposit, insurances), the long term gain is ownership of your own property.
Buy or rent 2021?
Ask that same question today and you’ll likely get a completely different response.
According to the latest property data out of CoreLogic, 55 percent of properties for sale in Brisbane and a whopping 73.1 percent of properties for sale in Regional Queensland are now cheaper to buy than rent. Cheaper on the weekly pay packet with some mortgage payments lower than $250.00 per week.*
In January 2020 when the COVID-19 pandemic first hit our shores, we expected our real estate business would slow down. But the opposite happened. We had a couple of slow weeks when everyone was a little uncertain as to what was happening, then our local market started to get busy and has been busy ever since. Buyer demand continues to be very high creating a seller’s market.
A Seller’s Market
A seller’s market means buyer demand exceeds property supply and vendors can sell their properties quickly and for a good price. At Central Realty Mareeba in this last quarter we have properties that have been on the market for as little as 48 hours before going under contract, and some with multiple offers.
What is bringing buyers to our region?
- Lockdowns have limited people’s spending, particularly spending on travel, generating a strong interest in property investment opportunities.
- Property prices in the capital cities have increased, Sydney up by 15% in just five months.
- Federal and State Government subsidies created confidence and financial support including deposit guarantees, early access to superannuation, job-keeper and others.
- The unexpected disruptions to people’s lives forced many to evaluate their lifestyle choices and “regional” lifestyle, “back to basics” became a goal for a better work/lifestyle choice.
- Mortgage interest rates are at an all-time low which lowers the weekly mortgage repayments.
Buyer Demand
Buyer demand remains high and a shortage of properties for sale and for rent perpetuates a seller’s market condition, even here in Mareeba. See our story here
We Can Help
If you’re looking to sell your property contact us to arrange a Property Consultation. Our FREE, no obligation consultation will give you all the information you need to make an informed decision on selling your property.
