Looking for a new home is always exciting but with property prices fluctuating and interest rates rising in Australia, are you wondering if renting is a better option than buying? If you’re a first-time home buyer, the prospect of finding a property within your budget could be another reason you’re considering the rental market instead.
Whatever the reason for comparing renting vs. buying options, speaking to the real estate agents Langwarrin locals rely on could help you make a final decision. There are numerous other reasons for renting a property and if any of them apply to you, then home rental could be your best bet. Keep reading to make an informed decision for your current situation.
7 Reasons Why Renting is a Better Option Than Buying
Rising interest rates and mortgage serviceability is making it difficult for many buyers to finance a home, especially first-timers. There are a number of incentives available for people wanting to get onto the property ladder. However, they don’t necessarily negate the fear that buying a home is too expensive an exercise to pursue.
Although there is a surge in rental prices, people working in cities or nearby can afford to pay this cost compared to buying a home in the same area. Renting versus buying inner city properties is often cheaper when compared to high mortgage repayments for owning a home in these locations.
2. Home Maintenance is Expensive
Another reason why many people choose to rent rather than buy is the cost of maintaining a property. Home maintenance becomes costly as the years go by and keeping up with the ongoing repairs can impact your savings, especially if you’re struggling to live within your means.
You can avoid expensive maintenance and repair bills when you rent a property where the landlord takes responsibility for such costs. Carrying insurance costs is also the landlord’s concern, saving you even more costs as a renter.
3. No Mortgage or Interest Rate Hikes to Stress About
Stressing about mortgage or interest rate hikes is something most homeowners face when dealing with financial hardships. Battling to keep up with mortgage repayments and rising living costs is a perfectly good reason for renting a property until the market stabilises again.
Renters don’t have to concern themselves with increasing mortgages and interest rates. Rent is normally a fixed amount, making it easier to budget and plan for your financial future.
4. Freedom to Move
Renters have the freedom to move to another location or a cheaper property when their current lease expires. Being able to move to a cheaper home also gives someone more flexibility to manage their financial situation, should they suddenly find themselves without a job.
Renting a property is the best solution if your occupation requires you to move locations often. Simply negotiate lease terms with your landlord based on your working conditions to prevent being trapped in a contract, especially when your job requires you to locate often.
5. No Need for a Down Payment
Securing a down payment often requires tapping into your life savings or taking out a loan, especially if you’re a first-time home buyer. The majority of landlords require a rental deposit from their tenants before leasing a property to them. However, compared to the down payment required to secure a home, the deposit amount is negligible.
The risk of investing your savings in the purchase of a new home is huge, because you may not make a profit or break even on the resale of your property in the future. Loan repayments can also have an impact on your financial situation and credit score if you’re struggling to meet them.
6. Easier to Downsize
If they find themselves battling with rising living costs, renters can choose to downsize when their lease expires. While homeowners can sell their properties if they need to go smaller, it’s not always as easy as walking away from a rental. Instead of stressing about getting a decent sale price on their property, renters can up and leave without too much hassle.
Property owners have to contend with expensive fees when putting their homes on the market and it may take months to sell before having the option to downsize to a smaller house. Also, making a loss on the sale of a house because of the need to downscale isn’t something renters have to worry about!
7. Access to Amenities
Renting an apartment often gives you access to amenities at a minimal fee or no cost at all. This could include an indoor swimming pool or gym facilities that would normally cost you quite a bit if you had to pay for these amenities elsewhere.
Furthermore, you don’t have to stress about the maintenance and repairs associated with the general wear and tear of these facilities. This makes renting an attractive deal, especially if keeping fit is a priority for you.
There are a number of good reasons why renting is more viable than buying a home. If you’re looking for an affordable way of living that gives you flexibility, minimal stress and cost-effective access to amenities, renting is an attractive solution.