Browse Forums Real Estate 1 Mar 29, 2013 6:53 pm This will probably come down to personal preference, however I am just after some opinions on what others would do. I am currently looking for an acreage to buy or build. It is looking like it will take us a while to find what we are after. We are currently renting and the rental has just been listed for sale. So we have 2 options. Look for another rental, or buy a cheap house on town size block. If we go for option2 will have no mortgage so taking into account stamp duty, legal and agents fees when we come to selling will be cheaper than renting if we live in the house for a year or more before moving. Option 2 sounds better but has the issue of what if we find our dream home just after moving into the cheaper house. I hope all of that makes sense. So just wondering what others would do? Re: buy cheap house or rent while looking for dream home? 2Mar 30, 2013 7:39 am Personally I would be tempted to buy ... Depending on your finances I would be planning on buying something that you could use as an investment - a unit or a cheap house that you could later rent out. This means you will not be pressured into buying something, just to get our of the renters market and instead of paying off someone else's mortgage, you will be paying off your own. Do you have the financial backing that you could afford to do this? How soon are you looking to buy a block, and how soon afterwards would you like to start building? What are house prices like in your area, is renting a house out going to be profitable to you? What is the rental market like? Re: buy cheap house or rent while looking for dream home? 3Apr 01, 2013 7:19 am Hmm lots to think about. Agape we could possibly keep the house as an investment property. Would depend how much the acreage ends up costing, and if the family expands in the meantime. We are in a small country town so rentals can remain vacant for some time. So would need to choose an easily rentable property. Would probably get 1% of the sale price in rent. Re: buy cheap house or rent while looking for dream home? 4Jun 13, 2013 4:25 pm I would rent... Why pay stamp duty, estate agent commission (when you sell), plus conveyancing and other fees, when you can just rent. Also if you purchase, your equity is held up in the house you purchased, which may impact on banks lending money for the new land purchase or to fund the build. Re: buy cheap house or rent while looking for dream home? 5Jun 13, 2013 4:28 pm I agree with Matt- all of the costs of selling add up quickly. If the rental market is iffy, you don't want to put yourself in the position of having two mortgages to pay. Our build: viewtopic.php?f=31&t=64705 Re: buy cheap house or rent while looking for dream home? 6Jun 13, 2013 4:45 pm I have always rented between houses I built. There is no certainty you will be able to sell when you need. You will be earning interest from your cash which you can use to offset the rent. The Harder You Try - the Luckier You Get ! Web site http://www.anewhouse.com.au Informative, Amusing, and Opinionated Blog - Over 600 posts on all aspects of building a new house. Re: buy cheap house or rent while looking for dream home? 7Jun 13, 2013 7:43 pm Rent, especially if there is a good vacancy rate in your town. You should be able to get a good renting price. I have unfortunately bought and sold too many times and now we are stuck with two properties that we cannot sell in this market without taking a loss. Re: buy cheap house or rent while looking for dream home? 8Jun 14, 2013 8:55 am I would try and calculate it out as much as possible. Eg. rent $400 a week assume it takes 18 months to find/build dream house - rent paid, $31,200 Cash for house in bank earning interest - $? (would need to work out for your situation) Total cost - rent paid - interest earned buy cheap house - $$$ stamp duty - dependant on your state, most have calculators on the government website agent, listing fees- again variable possible capital gains - $ extra mortgage/bridging loan if you are not able to see in time Total cost - $$ and see which one made more sense financially. It would also depend on the real estate market, do places tend to sell quickly or are they on the market for 6 months etc. Re: buy cheap house or rent while looking for dream home? 9Jun 14, 2013 1:53 pm I would say rent. We were in the same situation you are in now, but 3 years ago. I really wanted to build but the house we were renting was up for sale sooner than we hoped and we just didn't have enough money or time to build. We chose to buy. Long story short. We have recently sold the house we bought 3 years ago and now renting and building. We should of done this in the beginning as we are now saving more money renting than we were with a mortgage. If you buy your money will be tied up and if your dream block/acreage comes up for sale you might not be in the position to purchase. Re: buy cheap house or rent while looking for dream home? 10Jul 05, 2013 9:20 am There is no such thing as Dream home in my opinion. Its just a real-estate journey It all varies and its dependant on several factors like size, locality, neighbours, transport, connectivity, infrastructure, quality, and price of-course. Its normally hard to find such place. It all boils down to building wealth.. Just assess your current situation, get into the property market as soon as you can, build equity and move into your next "dream" property. As this is my first time building and especially as a OB im excited. We are pretty close getting the Building permit and ready to start. Checkout more on http://akasahomes.blogspot.com Re: buy cheap house or rent while looking for dream home? 11Jul 10, 2013 9:41 pm 1%pa rental return did you say? i just fell off my chair. I'd rent for sure Re: buy cheap house or rent while looking for dream home? 12Jul 11, 2013 8:02 am Yeh this holds true for all acreage's. Zoning also plays a major role in its valuation. As this is my first time building and especially as a OB im excited. We are pretty close getting the Building permit and ready to start. Checkout more on http://akasahomes.blogspot.com Hello everyone Please advice me how can I install mesh security window or we cab say mesh flyscreen inside while the pvc plantation shutters are already installed? Is… 0 12234 1. Roof cleaning and paint - which colour do you recommend? I often see black/ dark grey in use these days but I would prefer… 0 9186 Hi, I am looking into doing a KDR in Melbourne and am contemplating using Kialla Homes. 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