[Aimless]

We need to move to a bigger house with a bigger backyard for our boys (currently 4 and 2).

If we buy in a relatively good area closer to where we are now, it means selling our current house and taking out a mortgage of $550k, around $800 a week in repayments. It also means putting the boys in private schools as the government schools in the local area have a bad reputation.

Another option is to move to the inner west areas with good local schools but we will need to rent. The rent would be around $700 to $800 a week, but it means not having to pay as much to put the boys in school and closer to amenities and parks. We will also be renting out our current house and the rent will pay off or even be more than the current mortgage repayments.

DH and I are leaning towards renting but I don't like the thought that any time, we could be given a notice to move out and find another place. I've heard of horror stories where renting families were forced to move out practically every year.

Which one would you do?

ETA: we don't want to stay in the current area, even though it would be cheaper, as we're too far away from everything - work, shops, etc.

This post has been edited by Aimless: 27/01/2013, 08:30 AM

[Kalota]

Personally, I would buy.... You're going to be paying the same amount each week whether you rent or buy, the difference is that when you buy you will be paying off something that is yours and will always have that investment there.

But that's just me, different people may prefer to rent. I think it really depends on what your heart and gut is telling you you would prefer to do!

[LynnyP]

Renting and buying both have advantages. My concern is that I can be in my own house when I am old(er) and not be subject to the whims of a private rental system.

You don't need a big backyard with children. If you take them to parks, playgrounds etc regularly that is fine.

[Apageintime]

Since either way you end up with a house as you're keeping your investment, I'd rent.

Overall your costs will be lower as you won't need to pay for schools. Stamp duty is a killer, but yo can always buy later if you find renting isn't working out (hopefully will a bigger deposit)

[Madnesscraves]

I'd buy. Renting is all good and well but it doesn't seem to benefit you that much in your case. However if it's more of a case that you'd rather live in the classier suburbs then rent.

[Holidayromp]

I would be buying especially if the repayments are going to be the same as renting.

Are you able to look at schools in a different area and have them bus there? You can apply for out of zone enrolments.

[Fluster]

I'd rent. You already have the security of your own home to return to.

We're possibly looking at the same thing in a few years, and I'm in 'camp rent'.

[Just Another Cat]

I would buy.


Not many people rage on about how great their rental/landlord is. Plus the rent won't always be 800 a week. But your house repayments will remain around the 800 mark.

[Pearlberry]

I'd rent. You already have the security of your own home to return to.

We're possibly looking at the same thing in a few years, and I'm in 'camp rent'.

What? Most people's super will not adequately cover them in retirement. The last thing anyone needs to do is make financial decisions like this.

You will be in a much better position financially if you buy again. Since you are looking at about the same cost anyway, so if you buy you are essentially getting a house for the cost of putting your children through private school. Pretty good deal. Especially if it is a good school.

Plus as PP mentioned, rent will go up. In another 5 years you can expect to be paying more anyway. Yes mortgage rates will go up at some stage too, but that isn't likely for another year or two, when you have paid off some principle anyway.

With property prices and interest rates low. I think buying is a no brainer. Having said that, don't over extend yourself of course.

[Bek+3]

I think you should rent and keep your own house as an investment. That's a better short and long term strategy. Especially when the rental area is better for schools, parks, shops etc like you said.

This post has been edited by Bek+3: 27/01/2013, 09:55 AM