Deciding whether to buy or rent is never easy. There are certainly upsides to both and, sadly, some downsides too. So what should you do, buy or rent? Let’s look at the key factors that will affect your decision.
Pros of buying a luxury apartment in Sydney
- Your primary place of residence is exempt from Capital Gains Tax
- For the most part, you have more freedom to improve and furnish your apartment as you wish
- Security against displacement
- Home ownership is an investment
- Access to luxury facilities such as swimming pools, gyms and communal office space
- As population rises rapidly in Sydney, luxury apartments will be in high demand and could potentially yield a high rental income.
- High owners’ corporations fees for maintenance of numerous facilities
- There could be limitations on what renovations you can do depending on your Owners’ Corporation’s by-laws
- Interest repayments are currently around an average of 3.75%, so, depending on your loan amount, these repayments could actually end up costing you the same as a year’s rent.
- Investing in real estate always comes with a risk as it depends on how the property market fares
Pros of renting a luxury apartment in Sydney
- Smaller up front costs (deposit and first month’s rent)
- No investment risk
- Investing your savings in shares and bonds could earn a higher return than owning property
- Flexibility to diversify investments rather than put all your money in one property
- Freedom to try out an area before committing to living there long term
- Freedom to move (ending a lease is easier than selling a property)
- Access to luxury facilities with no additional maintenance costs
- “Rent money is dead money”. Your monthly payments are not going towards an investment
- No obligatory savings. A mortgage serves as ‘forced savings’ whereas choosing to save whatever you have left after rent is down to your will power and budgeting
When it comes to choosing between buying or renting luxury apartments in Sydney, there’s no simple black and white answer. Your choice will depend on a number of factors, mainly your financial situation. If you have the capital to buy an investment property in Sydney, a luxury apartment yields many opportunities for a high return on investment in both resale and rental income.
On the other hand, if you have the cash-flow but not enough put aside to cover the deposit and many other costs that come with buying a property, then why not look for an apartment for rent in Sydney and make the most of all the fantastic amenities with none of the hassle?
If you’re looking for an apartment for sale in Sydney or for a luxury rental, check out our world class new developments complete with luxurious facilities to die for at Green Square, Parramatta, Eastlakes, Sydney CBD and Waterloo. Or for information on all of our current listings to rent or buy, click here.