Your family's prospects for financial development will largely depend on your housing situation. Do you live in an undersized dwelling that is no longer suitable for your ambitions? Do you plan to relocate to a Sydney suburb, and would you like to prioritise flexibility, at least for the time being? Are you not planning to be tied up in a specific place for more than a few months? If that's the case, looking at houses for rent in Green Valley, NSW, could be an excellent choice. For most people, rentals are temporary housing solutions that are not suitable for long-term living.

However, rentals have their advantages, and for the right kind of person, they might represent a cost-effective choice that will help your personal and professional development. Why look at houses for rent? It’s more practical. We all want to be homeowners and invest in properties that, over time, will bring us significant financial returns. However, the real estate market in NSW is growing, and, likely, you do not meet the minimum financial requirements to qualify for a long-term mortgage. In addition, as the median home value in Sydney has exceeded $1.6 million, you probably don't have the necessary savings to pay for a new property in cash.

An Excellent Way to Test New Waters

Want to start a career in a new field? Do you need to relocate to a new city but don't know if the industry you are entering is right for you? If so, looking at houses for rent may be a flexible and cost-effective solution to cover your family's needs. Your new job is not what you expected, and you want to make a change? Then, with a rental, the process of vacating a property is relatively straightforward. Have you bought a property with the help of a mortgage? In that case, you will most likely be forced to remain in your neighbourhood for a considerable time.

Rentals are great options if you want to assess the general feel of a neighbourhood before purchasing a home. Plus, they are the only realistic solution available if you lack job security or the financial means to miss out on a mortgage payment with no long-term consequences. Rent payments are usually stable and do not get affected by market fluctuations caused by external economic factors. On top of that, renting can help you save up and plan for the purchase of a property.

Will your family grow in the next period? Are you satisfied with your professional growth? Do you want to settle down somewhere? Are you at the age where stability is your number one priority? Then, purchasing a property is the right thing to do. However, if you are between jobs or you simply do not want the financial responsibility that comes with a mortgage, rentals can be the best solution for your situation.

Why Green Valley?

It's all about the economics. The average rent in Sydney is $750 per week. However, the price you will have to pay for an average family house will depend on the neighbourhood you are targeting. The northern beaches are the most expensive when it comes to rent, as the weekly values for a two-bedroom property can exceed $1000 per week. However, dwellings situated in the southwest suburbs are cheaper, and their rent can go as low as $500 per week. Do you want to rent a property in Green Valley? If so, you will have to fork out around $600-650 per week, which, in Sydney terms, is a relative bargain.

The market-available houses for rent in Green Valley are more spacious than the national average. Plus, they are situated in close proximity to numerous shopping centres, restaurants, hospitals, recreational facilities and parks. Not least, GV is a stone's throw away from some of the most spectacular man-made landmarks in NSW. The Sydney Opera House, for example, is just 40 km east of GV, while the ANZ stadium is less than thirty. Are you a fan of outdoor excursions? In that case, The Western Sydney Parklands is just 10 km north, while Parramatta Park is a 15-minute car ride away. GV is ideally located, offers ample transportation links to central Sydney, and is significantly more affordable than neighbourhoods like Northbridge and Seaforth.

Think of the Financial Benefits

The purchase of a property is a financially beneficial solution if your goal is to benefit from long-term accommodation. However, if you are not sure about the stability of your work situation or you are planning to relocate to a different suburb, renting a house could be a more economically prudent choice. Renting involves less upfront costs than buying a home, and more often than not, the process of terminating a lease early is straightforward. Can it be costly? Yes. However, the overall financial risks are far less pronounced.

In most rental agreements, the landlord is responsible for the maintenance of the property. Therefore, if you are faced with an unexpected pipe leakage, an electrical issue, or a broken appliance, the repairs will not come from your pocket. Last but not least, renter's insurance is more financially favourable than homeowner's insurance, and you won't have to worry about property taxes or market fluctuations that can affect your long-term mortgage agreement.

Rentals have more predictable financial costs than purchased properties, and since you are not the owner, you don't have to worry about depreciation. Yes, in the long term, buying a property is a better financial investment. However, for short-term housing periods, rentals are a feasible solution that can give you the flexibility you need. Considering the market trajectory, investing in real estate is the right thing to do. However, if you get to the point where you can no longer afford your mortgage, your family's economic stability could be jeopardised.

A Solution to Consider

Rentals are flexible housing solutions that don't require the same level of financial commitment as purchased properties. Plus, they can allow you to avoid additional expenses such as property taxes or mandatory home insurance policies. In addition, for most rental agreements, the costs of property maintenance and upkeep are covered by the landlord. The AC breaks while you are a tenant, or do you notice a leak in the roof? Then, the landlord must resolve these situations in a time-convenient manner. Not least, depending on your annual income, rentals might require a significantly lower monthly financial outlay than a mortgage.

A one-million-dollar mortgage, with a thirty-year repayment period and an annual interest rate of 4.5%, will require a weekly expense of just over $1100. Sure, at the end of those thirty years, the property will be yours. However, the same property, if rented, could be available for only around $600-700 per month. That's a big difference, and in this age of financial instability, it could be significant. Renting a house can allow you to understand the general feel of a neighbourhood before you embark on long-term financial commitments. Plus, if you need flexibility and are not sold on being tied up to a place for an extended period, renting will be the only realistic solution at your disposal.

Publication: 18 July 8:32