Should I Rent or Buy?. Discover the BEST financial strategy
The age-old question persists: Should you rent or buy? Many claim that rent money is “dead money,” but let’s take a closer look. Join our upcoming webinar to explore the financial nuances of Live-In Accommodation (LIA), Married Quarter (MQ), Rental Allowance (RA), and home ownership to make an informed decision.
The Cost of Homeownership
Consider this scenario: You have a $500,000 mortgage at 3.5%. It will cost you $17,500 in interest, approximately $2,000 for rates, $1,200 in insurance, and $5,000 for maintenance each year. That’s a total of $25,700 per year in what some may call “dead money.”
Evaluating Defence-Provided Accommodation
Live-In Accommodation (LIA) can cost you between $2,418 and $6,968 per year in similar “dead money.” The only more budget-friendly option would be living in a caravan or sleeping in your car in the car park.
Married Quarter (MQ) or Rental Allowance (RA) may set you back between $11,700 and $15,704 per year in “dead money.”
Making the Right Choice
Would you prefer to spend $2,500 per year on rental or $25,700 per year on a purchased home? It’s clear that renting is the more economical option, regardless of the path you choose.
However, the goal is to eventually own your own home to leverage all your entitlements. With Defence-provided accommodation being cost-effective, it makes sense to rent using LIA, MQ, or RA to keep expenses low and save for a deposit. If you already own a property, consider renting where you live, as expenses on your owned property can become tax-deductible. Purchasing property is a “business decision,” so it’s essential to align your ADF entitlements with a thriving market.
Join Our Webinar
Learn how to make the right financial choice for your unique situation. Join our webinar to gain insights and explore the best strategies for your housing decisions.
Don’t miss out on this opportunity to make informed decisions about your housing choices. Register today!