Have you ever thought about buying your own home? It’s a big decision to make – buy or rent? In this post we share some reasons why you might consider buying instead of renting. As a mortgage broker at i Lend Finance Solutions, we have experience to help you buy a wonderful home, combined with our finance lending experience we can help you find the best loan to land the home you want.

RBA has recently published a report revealing property in Australia is almost 30% undervalued, which means it might just be 30% cheaper to buy a house than rent it! RBA senior research manager, Dr Peter Tulip told the Australian Conference of Economists held in Brisbane in July 2015 that owning a home is now more attractive, relative to renting. Here are a few reasons why:


  • Buying a home means you don’t have to ask permission to hang a picture on the wall, in fact you can decorate your home any way you see fit – simple things like installing shelving, or mounting your TV (which are usually not allowed in rentals).
  • You also don’t have to worry about your landlord deciding to sell up and having to find a new place to live
  • No more worries and fears about your weekly rates getting increased at a drop of a hat – buying your own place means your cost of living can be locked in (when you have a fixed-rate mortgage, your monthly payment stays the same every year)
  • You’ll also be able to provide a home for that dog or cat your family has been longing to give a home to (no ‘no pets allowed’ rules)
  • While you still have a mortgage, remember you’re paying towards something you can keep. With every payment, you’re getting one step closer to total ownership, and you’re building up equity too.


  • When you rent a place over an extended period of time, it is likely that your rental payments will gradually increase as per market demand. This makes it difficult to stick to any savings plans, especially if your income remains the same. If you buy a home though, your mortgage payments will likely stay the same (as long as interest rates don’t vary too much). This makes it easier to forecast your financials and create a budget savings plan for the future.
  • You are forced to save. Since you have to pay your mortgage every month, you are routinely putting money away (and into your house which you own) then, if you eventually sell your home after the mortgage is paid off, there’s a good chance that you’ll have financial gains when selling. House prices can appreciate (rise) over time.


  • Equity is the difference between the market value of your home and the outstanding balance on your loan, or in simpler terms, the value your house builds over time.
  • Little by little, as you pay off the principal on your loan, you build equity. Paying that monthly rent doesn’t accrue equity—in fact, you’ll never see it again.
  • If your home increases in value over the years and you were making monthly payments, then your equity also grows.


When deciding whether to rent or buy take these into consideration first:

  • Lifestyle – does staying in a fixed spot suit you or do you require mobility in residence? Remember buying or renting is as much a lifestyle decision as a financial one. But remember if you do decide to buy a home, and may be away from the location for a while, you can also make it an investment property and rent it out while you are away before settling down later but know you already own your own home for the future.
  • Cost Effectiveness – Find out what has sold in the area you’re interested in and how much for. Then, weigh the total ownerships of the cost of the property against the cost of renting. The result will vary depending on your choice of accommodation and location.

If you feel you’re ready to buy a home or property, let us at i Lend Finance Solutions help you with making an informed decision and source a home loan that best fits your lifestyle and needs.