27 Jun 2011
Buying a home is a big decision and some people wander whether or not buying a home is in their best interests, or if it’s a better option to continue renting.
To help decide whether buying or renting is a better option for you, I thought I would list some of the pros and cons of buying versus renting:
Buying Pros –
Real estate is almost always a great investment (especially in Everton Park!) and one that can put a roof over your head.
Buying forces you to think about your finances and save money.
If you make improvements to your home, you can help capitalise on your investment.
One of the best things about buying is that your home is all yours to do exactly what you want with – no more having to ask for a landlord’s permission!
Buying Cons –
Buying property is expensive, and not everybody has the available finances for a deposit and ongoing mortgage repayments.
Buying a home can initially make you feel like you have less available funds to spend on other things.
Renting Pros –
Renting gives you the freedom to move around. If you want to go travelling around the world then all you need to do is pack your bag and move (as long as your lease is up). Of course, you can still travel if you own a home, but you may need to arrange for it to be rented if you want to leave it.
If you don’t have a lot of available funds, renting is generally a cheaper option than mortgage repayments.
When you rent you don’t need to worry about things like rates or house repairs.
Renting Cons –
Renting offers less security and stability. If your rental home is sold or the owners decide to move in, you may be asked to move on.
When you rent you need to abide by certain rules. For example you may not be able to bring pets to the property or hang pictures on the walls.
While you may have more money in the short term if you rent, chances are you won’t save as much money in the long term as you would be able to if you bought a home.
The above pros and cons of buying versus renting provide a basic overview, but in most situations if you can buy then it is probably the better option in the long term.
It really does depend on your individual circumstances and what your goals are for the future though. Buying is good because it can be a great investment, but there are lots of other ways to invest if you don’t want to deal with home ownership.
If you would like to compare the costs of buying versus renting then here
is an online tool that can help you figure out the financial differences.