𝐓𝐡𝐞 𝐩𝐫𝐨𝐩𝐞𝐫𝐭𝐲 𝐦𝐚𝐫𝐤𝐞𝐭 𝐢𝐧𝐟𝐥𝐮𝐞𝐧𝐜𝐞.

The answer to whether buying or renting is better depends largely on your personal profile and the current conditions of the property market.

When house prices and interest rates are low, the monthly cost of owning a home is more affordable, which makes it a Buyers Market. Low interest rates also result in more affordable rental prices, but as the interest rate rises, so will rental costs.

The interest rate can have a considerable effect on the property market and particularly consumers who are already Homeowners.

"𝑇ℎ𝑒 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑟𝑎𝑡𝑒 𝑐𝑎𝑛 ℎ𝑎𝑣𝑒 𝑎 𝑐𝑜𝑛𝑠𝑖𝑑𝑒𝑟𝑎𝑏𝑙𝑒 𝑒𝑓𝑓𝑒𝑐𝑡 𝑜𝑛 𝑡ℎ𝑒 𝑝𝑟𝑜𝑝𝑒𝑟𝑡𝑦 𝑚𝑎𝑟𝑘𝑒𝑡 𝑎𝑛𝑑 𝑝𝑎𝑟𝑡𝑖𝑐𝑢𝑙𝑎𝑟𝑙𝑦 𝑐𝑜𝑛𝑠𝑢𝑚𝑒𝑟𝑠 𝑤ℎ𝑜 𝑎𝑟𝑒 𝑎𝑙𝑟𝑒𝑎𝑑𝑦 𝐻𝑜𝑚𝑒𝑜𝑤𝑛𝑒𝑟𝑠."

If a Homeowner has been offered a fixed interest rate, their monthly bond repayments will not be affected by the interest rates fluctuations. An interest rate which isn’t fixed, however, will have its benefits when the interest rate becomes lower as this results in lower bond repayments. In contrast, bond repayments are equally influenced by the interest rate rising, as this will result in increased bond repayments.

Buying a home rather then renting can be viewed as a better long-term investment. This is because while both a Tenant and Homeowner are subject to interest rate hikes, the Homeowner is paying towards their own property, and a Tenant receives no tangible benefits at the end of the lease. Buying a property is seen as a good investment as it offers the possibility of financial growth.