Would you be better off renting, or should you take the leap into the property market and buy?
Whether to buy or to rent is a dilemma faced by many Australians, and the answer is not always simple. While purchasing a home can be a smart investment in a person’s future, in some circumstances renting can make more financial sense.
So which option is better for you? Let’s take a look at some of the pros of each scenario.
Why you should buy
Rising property prices – The reason why many people choose to buy over renting is to take advantage of rising property prices. Homebuyers can make significant profits if they hold onto a property long enough for it to go up in value, or if they make value-adding improvements.
Of course some property transactions can result in a loss, but if you purchase in the right area, buy with a long-term outlook and make the effort to maintain your asset then there is a good chance that you will benefit from buying.
Enforced savings – “Rent money is dead money”, or so the saying goes. However there’s no denying that if you put money towards your own home then you will be putting money away towards your own investment.
While many can and do save while they rent, it may be harder to have the same level of discipline.
Greater sense of security – When you own a home you have more control. There is no risk that you might need to move out if your landlord decides not to renew your lease when your rental agreement ends.
Can make it your own – Want to make changes to your property? No problem! You can make your home your castle and renovate it to suit your individual needs, no permission from your landlord required.
Why you should rent
Less upfront costs – Buying can be an expensive endeavour and if you don’t have the capital behind you then renting can be the better (or perhaps only) option.
Renting can also leave you with more available funds from week to week, allowing you to invest elsewhere.
Less maintenance worries – Renting means you don’t need to have money saved away for when maintenance, repairs or other property issues come up.
Flexibility – You don’t need to commit to a property long term when you rent, you can simply pack up and move on when your lease agreement ends. This can be useful if your lifestyle dictates that you need to move around or you simply get bored of staying in the same place too long.
Your budget or the area you want to live in may dictate whether you want to buy or rent, but one isn’t necessarily better than the other. You need to do what suits you and your lifestyle.
If you’re looking to move to the Mudgee region and would like advice about buying or renting, contact McGrath Central Tablelands.