• Scheduled Maintenance

    Our online and app banking may be unavailable between 4am - 8am Sun 15 Dec 2019 for scheduled maintenance. Customers can still use their cards during this time. We apologise for any inconvenience.

Close

Renting in an area before you buy

This article is part of a fictional case study series following "Sarah", a typical first home buyer in Victoria. Read each article to follow "Sarah" through a variety of articles exploring issues related to buying a home.

Although Sarah had saved a good-sized deposit, she still wasn't sure about buying a house further out from the city without really knowing the area. 

If you’ve lived in the inner suburbs, or even mid-way out, then a different area of sprawling Melbourne can seem like a totally different world. How on earth are you meant to decide whether an area is right for you?

That’s the problem Sarah faced. She didn’t want to make such a dramatic move without knowing for sure that it would be a good thing – so she took up a year’s lease in Heidelberg.

Now, what can that allow her to do?

  • She can see whether the commute is worth it. A 10-minute walk to work is being replaced by an hour drive, or just over an hour on public transport. That’s a big change.
  • She can see whether she actually likes the services in her area. Is it a place for a young single to live, or more for families? What’s the vibe? She can figure that out, still save money and potentially confirm – or refute – any assumptions before she buys.
  • She can watch how the property market changes in her area (and potentially pick up a bargain if she wants to).

Ultimately, Sarah decided the move was worth it. Which meant that when she bought a house, the shock wasn’t as big – she was already used to the commute, the area and the people. And she just had to move around the corner.

SARAH'S TAKEAWAY:

Sarah was hesitant to sign a full year lease in a new area, but it was worth it. If she didn't know what she was getting into, she could have made a huge financial mistake.

Home First
Home First