How to Decide Between Renting or Buying

Renting gives you flexibility and lower upfront costs, but buying builds equity and gives you control over your living situation.

For landscapers, the choice between renting and buying isn't just about whether you can afford repayments. It's about whether tying up capital in a property makes sense when you might need cash for tools, a new ute, or expanding your business. It's also about where you want to live versus where you can afford to buy, and whether locking into a mortgage at this stage of your career helps or hinders your financial position.

What Renting Costs You (and What It Doesn't)

Renting means you pay for housing without building any ownership stake. At $500 per week, you're spending $26,000 a year with nothing to show for it in asset terms. But you're also not paying for rates, insurance, maintenance, or interest on a loan. You're not locked into one location, and you're not carrying the risk of a property dropping in value.

For landscapers who move between job sites or prefer to live close to work in different areas, renting can make financial sense if it means lower transport costs and more time on the tools. If you're spending $150 a week less on fuel and two hours less on the road because you rent closer to your main client base, that's real money and real time you're getting back.

What Buying Actually Costs Upfront

Buying a property means finding a deposit, covering stamp duty, and paying legal and inspection fees before you even settle. For an owner-occupied purchase, most lenders want at least 5% of the property price as genuine savings, though some low deposit loans for tradies allow you to borrow with less if you meet specific criteria.

You'll also need to cover Lenders Mortgage Insurance if your deposit is below 20%, which can add thousands to your upfront costs. Then there's stamp duty, which varies by state but typically runs into the tens of thousands. These are costs you don't get back if you sell, and they're costs you don't face as a renter.

When the Numbers Favour Buying

Buying makes financial sense when your repayments are similar to rent and you plan to stay put for at least five years. Consider a landscaper who rents at $480 per week in a suburb where they could buy at the current median. With a 10% deposit and borrowing the rest on a variable rate, their repayments might sit around $550 per week. That extra $70 per week is building equity rather than disappearing into someone else's pocket.

Over five years, they're paying down the loan principal and benefiting from any property value growth. If the property increases in value by even 3% per year, that compounds on the full property value, not just their deposit. Renters don't get that upside. They also don't get the option to renovate, run a business from home, or install permanent structures without landlord approval, which matters if you're storing equipment or want a dedicated workspace.

For landscapers specifically, owning can mean being able to park a trailer on-site, store mulch or pavers, and work from home without dealing with lease restrictions. That's not just lifestyle, it's a business advantage that renting rarely offers.

When Renting Makes More Sense

Renting beats buying when you need liquidity for your business or when buying would stretch your finances to the point where one bad month puts you behind on repayments. If you're self-employed and your income fluctuates, renting gives you breathing room that a mortgage doesn't.

It also makes sense if you'd need to buy in an area you don't want to live long-term just to get into the market. Buying a unit an hour away because it's all you can afford, then spending $200 a week on fuel and tolls, is rarely a better outcome than renting closer to where you work and saving the difference. Borrowing capacity matters, but so does living somewhere that supports your income and lifestyle.

Renting also avoids the risk of buying at the wrong time. If property values drop by 10% after you buy, you're still locked into the loan amount you borrowed. That can limit your options if you need to sell or refinance. Renters can move without worrying about whether they'll recover their costs.

How to Make the Call for Your Situation

Start by comparing your current rent to what repayments would look like on a property you'd actually want to own. Use a repayment calculator and factor in rates, insurance, and maintenance, which typically add another $150 to $200 per week to ownership costs. If the total is significantly higher than rent and you don't have a solid deposit saved, renting might be the more sensible move for now.

If repayments are close to rent and you've got a deposit sorted, the question shifts to whether you're ready to stay in one place and whether buying supports your work and lifestyle. For landscapers who operate across multiple regions or who are still building up their client base, renting can give you the flexibility to move toward opportunity without being tied to one property.

If you're ready to buy, getting home loan pre-approval before you start looking gives you a clear budget and speeds up the purchase process. If you're not sure whether buying makes sense yet, speak to a broker who understands self-employed income and can walk through the numbers without pushing you toward a decision that doesn't suit your situation.

Call one of our team or book an appointment at a time that works for you. We'll look at your income, deposit, and what you're trying to achieve, and give you a straight answer on whether buying or renting makes more sense right now.

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