To Rent or Buy?

By 28 August 2015Finance
Great Value Holiday Destinations

To Rent or Buy

Moving rental properties? Chances are you’ve likely weighed up the possibility of buying a home against signing another rental agreement. Whilst some believe rent money is dead money, the issue isn’t so black and white. It pays to look at both options before making the final decision.

Renting – Pros and Cons

Whilst renting isn’t just an option for those who cannot afford a deposit on a home. Deciding to rent or buy is a decision relative to the circumstances you’re currently in.

Pros

  • Any maintenance issues are the responsibility of the property owner.
  • Moving is a relatively easy process. You don’t have to wait for your house to sell before you can take a job offer in a new city or move to a different neighbourhood.

Cons

  • It’s always possible that a property owner will decide that they no longer want to rent to a particular tenant. Knowing that your ability to stay comfortable in the place you call home is up to someone else can be nerve wracking.
  • Competition in the real estate market has made renting more common. This competition means that rent prices continue to increase.
  • Renting doesn’t allow you to own an asset.
  • You can’t make alterations to the property as you see fit.
Buying – Pros and Cons

Just like renting, there are some pros and cons associated with buying a property, including:

Pros

  • Mortgage payments associated with a fixed interest rate are set, so you’ll be able to budget your housing repayments without worrying about an increase in the overall amount owed.
  • You retain the right to make modifications to your home without having to ask permission of a landlord.
  • If you have trouble saving money, paying off a mortgage acts as a forced savings plan. You’re buying an asset that can be sold in the future.

Cons

  • The price of buying a home may make it impossible for you to live in your desired location.
  • Buying a home can be restrictive should you decide that you want to move.
  • Anything that goes wrong on your property is your responsibility. You’ll have to cover the costs when maintenance issues crop up.
 So what’s the answer?

Which one is right for you? There is no right or wrong answer when it comes to deciding. It really depends on your individual situation.

Contact us today – Nathan Vecchio – 0410 000 689

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