So you’ve finally decided it’s time to jump on the property ladder.
But just when you’ve telephoned the bank for that mortgage consultation and called the local agent, the news that less than half of Australians will own their own homes next year hits the headlines,
For some, it means the end of what was once regarded as the “Australian dream”. But is it?
For some, renting is entirely the right solution that matches their personal circumstances. You might be starting a business or having a baby – a time when you need all your dollars to keep things going.
Here’s five reasons why renting is right – and another five that shows buying still has its pluses.
Five Reasons to Buy
- Property is a great investment. If you paid the median price of $573,000 in 2003 for a Sydney house, that would be worth $1.02 million today.
- Why pay money to somebody else in rent when you can be investing in yourself by buying your own home?
- Interest rates are at record lows. Mortgage loans at under 4 percent are the cheapest money you are likely to get, and they could even fall again this year.
- If you rent, the landlord might move you on every six or twelve months. The rental market is tough. Who wants to be battling it out with other renters?
- You can use the equity in your home to power other borrowings and investments.
Five Reasons to Rent
- You can rent a much fancier house than you can afford to buy.
- It frees up money for investing, even in property. It can be a smart move to rent the place you live in, and buy some cheap investment properties.
- Renting can be cheaper, and you have more flexibility on where you live. If you live in an apartment, the landlord pays the strata fees, not you.
- If something goes wrong with the house, the landlord fixes it.
- Renting makes your life more flexible. This can be good if you need to move around for work.