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Rent Converter

Are you sick of feeling like the money you're paying on rent is being wasted?

Ever wondered how much you’ve paid your landlord over the years? You probably don’t want to know! Anyway, with one easy click, our Rent Converter tool will show you the kind of homes you can afford for what you’re paying in rent right now.

Compare your rent to {break} owning your own home!

How much rent do you pay per week?

Move the rent slider and find out if your money could be better spent.

Is it better to rent or build a house?

Buying a house is a huge decision, so how do you know when you’re ready to make that kind of commitment?

While renting has its perks, it might make more financial sense for you to get into your own home – not to mention the sense of independence and achievement you’ll feel with a place to call your own.

Whatever your current situation and personal goals are, here’s a general overview of the pros and cons of buying vs renting.

  • What are the benefits of renting?
    1. More freedom and flexibility
      Whether you need to relocate somewhere new for a job, upsize into a larger property, or switch an inner-city apartment for a quieter home in the suburbs, renting offers you more flexibility to live the lifestyle you choose.

    2. Less stress financially
      Many young Australians might not have the money available to put on a home loan deposit, let alone the costs of maintenance and regular mortgage repayments. So renting can be more manageable for some people.
  • What are the downsides of renting?
    1. Rising rent
      As the property market and general economy are constantly changing, so too will the cost of rent as landlords continue to bump up the price.

    2. Less stability
      Renting generally doesn’t offer as much security as owning your own home. Whether it’s dealing with unreliable housemates or the landlord choosing to sell the property or move back in, renting can leave you in the lurch with little notice.

    3. Rent inspections and having to follow the landlords rules
      Do we need to say more?! Inspections may not be too much of a hassle but not being able to have a pet, or change the home to suit how you want to live might be a deal breaker.

    4. You are paying someone else’s mortgage
      The property will be your home, but it won’t be your asset. A mortgage is like forced savings. You have to pay your mortgage every month (or fortnight or week) - putting money towards an asset that is likely to increase over time. With renting, it can be tempting to spend spare cash rather than save or invest it.
  • What are the benefits of buying?
    1. It is all yours
      Living in your own home means you can enjoy your personal space (and decorate how you want!) without the intrusion of other housemates or rental inspections.

    2. Stability
      Instead of being at the mercy of your landlord’s decision to renew or end your lease with them, you will always have a home to return to, as well as more stable expenses and loan payments you can consistently budget for.

    3. Your house is an investment
      Instead of putting money into your landlord’s pocket, you are investing in an asset – over time, the value of your home could increase and you could make a healthy profit if you choose to sell.

    4. You can build equity
      Equity is the amount of your home that you own (i.e. the difference between the current market value of your home and your remaining loan balance).

      As you pay off your loan, you’ll be building equity in your home, which can be used to invest in other assets such as a new home, car, or other personal goals you may have.

     

  • What are the downsides of buying?
    1. Initial expense can be higher
      Buying a home requires you to pay high upfront costs, as well as ongoing maintenance expenses and loan interest on top of regular mortgage payments.

    2. Reduced flexibility
      Instead of being able to move easily from place to place as a renter, your home is a long-term commitment.

First Home Buyers Guide