Renting vs Buying?

Still deciding whether to buy or rent a home? Compare the upside and downside of each approach to help guide your decision making.

 

Upside

Downside

Renting 
  • There’s no doubt renting allows you to live flexibly – moving as often as you want or need to.
  • For the most part, it’s a stress-free living situation where you don’t have to factor in costs for general maintenance and repairs.
  • You can make the most of living in inner-city suburbs where you normally couldn’t afford to buy into.
  • It’s often the most affordable living situation – you don’t need a 20 per cent deposit to start renting.
  • You’re helping someone else pay off their mortgage, instead of putting money aside for your own investment.
  • You can face fierce competition in the rental market, particularly for apartments in major cities and popular suburbs.
  • There’s limited certainty around increases to your rental payments, as you’re subject to your landlord’s potential price increases at any time.
 Buying
  • Owning your own home is investing in an asset that will grow in value over time, setting you up for a stronger financial future. 
  • As an owner, you have complete control of the repairs, renovations and upkeep for your place, meaning you can really make your apartment your own.
  • With historically low interest rates, the sooner you can get your foot on the property ladder, the better.
  • You also have a fixed address, offering you greater home security
  • To even contemplate buying a new home, you need to have a significant deposit of at least 10% of the purchase price saved (or contributed to by a third party). 
  • Once the buzz of buying your first home wears off, you also need to consider the additional costs besides the purchase price. Remember to keep some cash aside for stamp duty, legal fees, inspection reports, body corporate fees and other unforeseen costs.

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