The big question everyone’s asking

We provide information to the big question everyone's asking - should I buy or rent? Our pros and cons will help you determine which option is better and cheaper. Win!

Should I buy a property or keep renting?

In today's housing market, the question of whether to buy or rent isn't that straight forward- there are lots of things you need to consider.

We weigh up the pros and cons of both so you can make the best decision for your circumstances.

What are the benefits of owning a home?

Home ownership comes with many advantages. For one, homes typically increase in value (just look at that percentage above) so, as well as providing a roof over your head, you may be building equity. This sets you up with a nest egg for the future – something to leave to your children, or something to sell and put towards retirement.

How many years is a mortgage loan?

Of course, you will be locked into a mortgage for the better part of 30 years, unless you pay it off sooner, which is definitely doable if you follow a few repayment guidelines and tips, many of which you’ll find on our repayments calculator page.

What is a rentvestor?

Another way to benefit from owning a home is to buy an investment property. This way you can rent where you want to live and buy where you can afford. This rent and invest strategy is known as rentvesting and it’s becoming more popular. It’s also a way for first home buyers to get a foot on the property ladder.

Buying and selling an investment property means you can wait and hope that real estate prices increase over the long term. If you charge less rent than what you are making in mortgage repayments, the net loss can be used as a tax deduction, which is known as negative gearing or having a negative cash flow.

Chief executive officer of the Real Estate Buyers Agents Association of Australia (REBAA), Rich Harvey says it’s better to be in the market than to rent forever. “You can’t save your way to wealth. If you’re paying rent and that’s your only interaction with the property market, you’re going to be renting your whole life,” he tells UNO, adding rentvesting is simply renting where you work and buying in another area. “If you’ve got a rental property that you’re renting to someone else, you’re in the market.”

Harvey advises people to start young and start early. “Property for me is like a forced savings program,” he explains. “If you don’t spend your money on property, you’ll probably spend it on something else: you’ll buy more holidays, a fancier car, more clothes – which are all depreciable items which decline in value the minute you buy them.

“Sure we need cars, we need clothes, but you have to balance that out with saving for the future.”

Where should I invest?

Cracking the investment property market can be just as hard as finding a property to live in. It usually depends on your goals and how much you have to spend. There are a few rules of thumb that will serve you well:

Try to stick with capital cities: capital cities tend to have a large population, better infrastructure and more jobs, which can equate to higher rental demand.

Diversify your search: Because markets grow at different times, buying in what was a property hot spot last year may not be the best option this year.

Choose desirable neighbourhoods: If you wouldn’t live there, why would anyone else? Things like good quality schools, a low crime rate, good public transport options, a stable job market, shopping hubs and good amenities will appeal to renters.

What are the advantages of renting a house?

Renting a home comes with advantages too, of course. You won’t have to save for a deposit, you can avoid paying maintenance costs and you don’t have to directly worry about things like interest rates rising (unless your landlord puts your rent up), property prices decreasing, home loans and whether you can afford to buy anything.

Is it cheaper to rent an apartment or buy a house?

When it comes to buying or renting, many people compare like for like. In other words, if you adore renting a two-storey terrace in Fitzroy, then you’re going to want to buy a two-storey terrace in Fitzroy, right? And that could be where you realise the cost of buying property is out of your league.

But when it comes to buying property in Australia, a better way to look at it might be to compare apples and oranges. While you might not be able to afford a two-storey terrace in Fitzroy, you might be able to afford an apartment in Fitzroy – or a terrace in nearby Collingwood. A growing trend here tends to be rent where you want to live; buy where you can afford.

A lot of people have to make sacrifices when they buy property and scoping out what are known as ‘bridesmaid suburbs’ could provide a great way to enter the market.

But, while it might be cheaper to rent your whole life in some places in the US and Europe, renting an apartment probably does work out slightly better than buying a house in places like Sydney. It depends which way you choose to look at things though. And there are certainly ways to buy a property as an investment in a different area to where you want to live so that you can continue paying off someone else’s mortgage while also paying off your own.

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What sort of loan do I want?

The type of loan you want will differ depending on whether you do buy a property to live in or decide to invest. When you search online with UNO, the online mortgage broker, our technology will filter through thousands of home loan options from more than 20 lenders to find the ones that will best suit your needs.

UNO works with major banks CBA, National Australia Bank (NAB), St George Bank, Westpac and ANZ, as well as smaller lenders including Bank of South Australia, MAS, Homeloans, Macquarie Bank, ING Direct and Pepper home loans.

If you'd like to speak about some of your home loan objectives Book in a quick call with our customer care team

It’s important to note that the information we give here is general in nature – no matter how helpful or relatable you find our articles. Even if it seems like we’re writing about you, it’s not personal or financial advice. That’s why you should always ask a professional before making any life-changing decisions.



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November 14, 2024
Paul helped us from day one before we even arrived in Australia so we knew exactly what we needed to prepare. He’s got a tonne of knowledge and was really lovely and supportive to deal with. Helpful and easy going. Would highly recommend - now in our first Aussie home and Paul made the process all very easy!
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After just four months in Australia, our New Zealand home sold, prompting us to stop renting and invest locally. We found Paul through a Kiwi Facebook group, and his exceptional service exceeded our expectations. From initial contact, Paul provided clear explanations, friendly communication, and prompt responses to our queries, making our mortgage process remarkably smooth. We highly recommend him.
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Mike Parsons went above and beyond to ensure that our refinancing journey was painless and successful. He was communicative, accessible (even working while on holidays!), and his knowledge of the systems at play meant that he picked up on things that other brokers missed. Would 100% recommend Mike, and will definitely be back next time we need a broker.
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October 31, 2024
Mike Parsons handled our refinance of our home loan with ease and a depth of knowledge that ensured we got the best deal possible for our situation. We didn't have an easy one to solve for with my husband being self employed and we were consolidating finances as well for a car loan. But Mike handled it all for us and once we had provided him with all the documents we literally didn't have to do a thing after that, it was so easy and so quick we are super happy with the experience! Top notch! Highly recommend!!
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October 10, 2024
Absolute legend, helped me through the first home buyers scheme, explained everything in a way that made sense, was very knowledgeable and a joy to work with.
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October 8, 2024
Mike Parsons made it possible for us and the in laws to get 2 pretty complicated home loans. He helped us through everything and we'd be happy to use Mike and the team again for anything we needed. Thanks again!
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October 2, 2024
I have gone through 6 different mortgage brokers prior to meeting Andrew Wyers. He is the most patient mortgage broker I’ve encountered and also the most knowledgable about the bank’s lending process and products available. It took me 1 year to find a house I was happy with and Andrew was always there to assist with any issues or questions I had; he always return my phone call, even on the weekends or when his away on holidays. The loan process was smooth and I had no complications. The process with Andrew was again nice and easy, he took the time to find and put together the right package that was suited to my situation. I have recommended Andrew to my family & friends and everyone have been grateful and completely satisfied with his service.
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September 23, 2024
I had not dealt with Scott or UNO before finding them on the internet. Even as an Australian citizen living and working overseas, I knew obtaining a loan would be difficult. However, Scott went above and beyond what I expected from a mortgage broker. I genuinely don’t think you could find another company that works as hard as they did to get my home loan approved. I cannot recommend them highly enough. Everyone I dealt with at UNO were extremely professional and helpful. If you are looking for a broker, you would be mad not to give them a go. Thanks to Scott Wilkinson, Dalby Bajwa, Jena Lasquite and Andrew Pacini. Shaun.
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Shan Liao
September 3, 2024
I had an outstanding experience with Tian Liu. He was incredibly professional and attentive, going above and beyond to meet my needs. His expertise and dedication made the entire process smooth and stress-free. Tian's deep knowledge of the market and commitment to finding the best solutions for his clients truly sets him apart. He was always available to answer my questions and provided invaluable guidance throughout. I highly recommend Tian Liu to anyone in need of a reliable and skilled broker!"
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Nathanael Chin
September 3, 2024
Tian Liu provided exceptional service throughout the entire process. His professionalism and keen attention to detail were evident from the start. Tian consistently kept us informed and offered insightful advice that made us feel confident in our decisions. He truly cares about his clients and works tirelessly to ensure the best possible outcome. We couldn't be happier with his assistance and highly recommend Tian to anyone looking for a trustworthy and knowledgeable broker.
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