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Buying vs Renting in 2026 - What People Forget To Consider

Buying vs Renting in 2026 - What People Forget To Consider

The “buy vs rent” debate is louder than ever in 2026.

With shifting interest rates, tight rental markets, cost-of-living pressures, and changing lifestyle priorities, many Australians are asking the same question:

Is it smarter to buy or better to rent?

While most people focus on repayments vs rent, the real answer is more nuanced. Here’s what buyers and renters often forget to consider.

1. It’s Not Just Repayments vs Rent

Most comparisons look like this:

  • Mortgage repayment: $X per week

  • Rent: $Y per week

But that’s only part of the story.

When you buy, you also need to factor in:

  • Stamp duty

  • Legal and conveyancing costs

  • Building and pest inspections

  • Ongoing maintenance

  • Council rates and insurance

  • Strata (if applicable)

When you rent, you avoid most of these, but you’re also not building equity.

The true comparison isn’t just weekly cash flow. It’s long-term financial position.

2. Lifestyle Flexibility Has a Value

Renting offers flexibility.

You can:

  • Relocate for work easily

  • Upsize or downsize quickly

  • Try new suburbs before committing

Buying offers stability.

You can:

  • Renovate

  • Keep pets without permission

  • Create long-term security

In 2026, with hybrid work still common and career mobility high, flexibility is worth something, especially for younger professionals or growing families unsure of their long-term plans.

3. Opportunity Cost of Your Deposit

One of the most overlooked considerations is what your deposit could be doing elsewhere.

For example:

  • Could it be invested?

  • Would it generate higher returns in another asset class?

  • Is keeping liquidity more important to you right now?

On the flip side, property offers leverage and you control a large asset with a smaller upfront investment. If values rise, growth occurs on the full property value, not just your deposit.

The real question becomes:
Where will your money work hardest for your goals?

4. Market Timing vs Time in the Market

Many people delay buying because they’re waiting for the “perfect time.”

But historically, time in the market has mattered more than timing the market.

If you’re buying a long-term home (7 - 10+ years), short-term fluctuations often matter less than:

  • Buying within your means

  • Choosing the right location

  • Ensuring the loan structure suits your lifestyle

Renting while waiting for a crash that may not come can sometimes cost more in the long run, especially in undersupplied areas.

5. Emotional Factors Matter More Than We Admit

This decision isn’t purely financial.

Buying can bring:

  • Pride of ownership

  • Security for children

  • A sense of permanence

Renting can bring:

  • Freedom

  • Less financial pressure

  • Peace of mind without maintenance responsibilities

In 2026, financial stress is real for many households. Choosing the option that lets you sleep well at night is often underrated.

6. Future Borrowing Power

Another forgotten factor: your borrowing capacity may change.

Interest rates, lending policies, and your own income can shift over time. Waiting might mean:

  • Stronger borrowing power later

  • Or reduced capacity if policies tighten

Understanding where you sit now and what could change is crucial.

7. Local Market Conditions Matter

National headlines don’t always reflect your local market.

In some areas:

  • Rental demand is extremely tight

  • Vacancy rates are low

  • Prices are stabilising or growing

In others:

  • Stock levels are higher

  • Buyers have more negotiating power

The decision to buy or rent in 2026 should be based on local conditions, not just national commentary.

So… Buy or Rent?

There isn’t a universal answer.

Buying makes sense if:

  • You plan to stay long term

  • You’re financially prepared

  • You value stability

  • You can comfortably afford repayments

Renting may make sense if:

  • You need flexibility

  • You’re building your deposit

  • You’re unsure about location

  • You want to reduce financial pressure

The smartest move isn’t what your friends are doing.
It’s what aligns with your financial position, lifestyle, and long-term goals.

If you’re weighing up buying vs renting in 2026 and want to explore what’s realistic in your current market, having a personalised strategy discussion can provide clarity and confidence in whichever path you choose.

FAQ

Do I need to be there for open homes or inspections?

Not at all. We’ll handle everything professionally, respecting your time and space while ensuring buyers feel welcome and informed.

How should I prepare my home for sale?

Presentation matters. From minor touch-ups to expert styling, we’ll guide you on how to showcase your home in its best light—inside and out.

What should I look for in a real estate agent?

Experience, communication, and local knowledge count. You want someone who listens, guides you with honesty, and knows how to get results—now and always.

What’s a property appraisal, and why does it matter?

A professional appraisal gives you a clear understanding of your home’s current market value—an essential first step in planning your sale with confidence.

When’s the right time to sell?

The ‘perfect’ time depends on your property, your goals, and the market. We’ll help you weigh the factors and decide what works best for you.

Will I need to pay Stamp Duty?

Stamp Duty usually applies to buyers, but rules can vary. We can connect you with trusted legal and financial advisors to make sure everything’s covered.

‘What’s the best way to market my property?’

The best marketing strategy is one that’s tailored—to your home, your audience, and the current market. It’s not about ticking boxes; it’s about standing out where it matters. That means combining strong digital reach with compelling visuals, authentic storytelling, and targeted strategy. If you’re thinking about selling Talk to us today.