Located in the growing Sunshine Coast suburb of Mount Coolum, this investment property was purchased Home Scouts for…
Should you buy or rent your next Sunshine Coast home if you’re relocating? This is an important decision for anyone considering relocating, and it’s essential to consider both the pros and cons before making a choice.
Each option offers distinct advantages and disadvantages that can impact your financial situation, lifestyle, and long-term goals.
If you’re moving from interstate, overseas or even Brisbane, and you’re not familiar with different pockets of the Sunshine Coast it can be worthwhile to live like a local first and rent, before jumping straight into a purchase. Renting, however, has its challenges. And buying offers unmatched stability and security, particularly in a market where rental supply is so low.
So what is the best option for you?
In this blog, we delve into the pros and cons of renting and buying a home when relocating, to help you make an informed decision based on your unique circumstances.
Renting a Sunshine Coast home
Renting a Sunshine Coast home when relocating enables you to immerse yourself in the community and explore the streets, amenities, and local lifestyle firsthand. By renting in a Sunshine Coast suburb you would like to buy in, you’ll gain valuable insights about the neighbourhood and its potential for capital gains.
While renting offers short-term flexibility and freedom from potentially expensive maintenance, it lacks the long-term benefits that come with buying. As a renter, you of course miss out on the potential for equity growth. Rental costs can also escalate over time (as we’re currently experiencing here on the Sunshine Coast as with elsewhere), leaving you vulnerable to increasing expenses and limited control over your housing situation. We’re all aware of the state of the current rental market with rental costs escalating and tenants struggling to find homes here on the Sunshine Coast. In addition, taking into account things like costs of professional bond cleans and moving services, the cost of moving often reaches into the thousands.
Pros of renting a Sunshine Coast home
- Flexibility: Renting provides greater flexibility, allowing you to move more easily without the responsibilities and costs associated with selling a property. This flexibility is advantageous if you’re frequently changing jobs or uncertain of a location.
- Lower upfront costs: Renting typically requires a smaller upfront investment, such as a bond, compared to the significant deposit needed for buying a home. This makes renting more accessible for those with limited savings or uncertain financial situations.
- Limited maintenance and repair costs: As a renter, you are generally not responsible for major maintenance and repair costs. The landlord or property management company assumes these responsibilities, saving you money and the hassle of unexpected expenses.
Cons of renting a Sunshine Coast home
- Lack of equity: Renting means you don’t build equity in the property. You are essentially paying for someone else’s investment without reaping the long-term financial benefits of homeownership.
- Restricted personalisation: Renters often face limitations on making modifications to the property. You may not have the freedom to paint the walls, install permanent fixtures, or make other changes to personalize your living space.
- Potential rent increases: Rent prices are subject to market fluctuations, and landlords may increase the rent (as we have seen in current market conditions). This lack of stability can make it challenging to budget for the long term.
Buying your Sunshine Coast home when relocating
Buying a home on the Sunshine Coast when relocating provides unmatched stability and security. It’s an investment that allows you to build equity and enjoy long-term financial gains. With low property supply resulting in strong prices on the Sunshine Coast, buying presents potentially significant capital growth opportunities over the long term. However, you do shoulder the cost of maintaining the property.
Pros of buying a Sunshine Coast home:
- Long term investment: One of the primary benefits of buying your Sunshine Coast home is the potential for long-term financial security. Real estate has historically been a reliable investment, with properties generally appreciating in value over time. By building equity, homeowners have the opportunity to accumulate wealth and create a valuable asset for your future.
- Stability and control: Owning a home provides stability and a sense of belonging. Unlike renting, where you are subject to the landlord’s decisions, homeowners have control over your property. You can renovate, personalise their living space, and have the freedom to create a home that reflects your unique style and preferences.
- Potential tax advantages: Buying a home can provide you with tax benefits or concessions (subject to your personal circumstances and these need to be advised by a qualified tax advisor). For investment properties, there may be various tax deductions, reducing the overall tax burden. Additionally, when you sell your home, you may qualify for capital gains tax exclusions (for your own home), allowing you to keep more of the profits from the sale.
- Potential rental income: If you have extra space in your home or additional property, you can generate rental income by becoming a landlord. Renting out a portion of your home or investing in a rental property can provide an additional revenue stream and contribute to your overall financial stability.
Cons of buying a Sunshine Coast home:
- Financial considerations: Buying a home requires a significant upfront investment. Deposit, stamp duty, purchase costs and ongoing expenses such as mortgage payments, insurance, and maintenance can strain your finances. It’s crucial to have a thorough understanding of your budget, affordability and ensure that homeownership is financially viable for you.
- Maintenance and repairs: As a homeowner, you are responsible for the upkeep and maintenance of your property. Maintenance tasks and repairs can be time-consuming and costly. From fixing plumbing issues to replacing a roof, these unforeseen expenses can put a strain on your budget. It’s essential to be prepared for the responsibilities and costs associated with home maintenance.
- Limited flexibility: Homeownership brings a certain level of permanence. If you prefer the freedom to move frequently or are unsure about your long-term plans, buying a home may restrict your flexibility. Selling a home can take time and may involve real estate agent fees and other associated costs.
- Market volatility: While real estate has historically been a solid investment, it is not immune to market fluctuations. Economic conditions and local market trends can impact property values. In some cases, homeowners may find themselves in a situation where their home’s value depreciates, making it challenging to sell or refinance.
So what is best for you when relocating?
Depending on your circumstances, renting first may work best for you to arm you with all of the knowledge you need to make a well-informed buying decision.
But renting isn’t the only way to gain local insight. A large part of my role as a trusted Sunshine Coast buyers agent involves being the local expert, my client’s eyes and ears on the ground to tell them what the local neighbourhoods and amenities are like, which streets are good and where clients can purchase a home that represents good value for their budget and lifestyle.
We are always here to help and make the relocating process smooth for you. Please reach out if you need advice on what would be best for you.