Renting vs Buying: Key Considerations
Is Property Ownership Right for You? Let's Unpack That Big Question…
I'll be the first to admit I'm a bit biased - I absolutely love property.
Owning real estate over the years has not only built my wealth but also allowed me to buy more properties, travel the globe, and even kickstart my own business. And guess what? I was no expert at the start, I just got onto the property ladder and learned as I went. AND boy do I wish I had the expert tips and knowledge I have now (like you do ;)).
BUT hey, I get it— Property ownership is not the journey for everyone, and that's perfectly okay.
So, let’s dive into what owning a home versus renting really looks like, with a classic pro’s and con’s list to help you work out which might be the right fit for you.
Renting: Is it Just Money Down the Drain?
✔️ Pro: Skip the mortgage stress. There are no rising interest rates to worry about here. However, keep in mind that rents can increase annually, often outpacing your wage growth.
✔️ Pro: Crave freedom? Renting offers the flexibility to move freely without any ties.
✔️ Pro: No costs to maintain a property or worry about unexpected broken taps or burst pipes… bonus!
❌ Con: That rent check? It’s money gone forever with nothing to show for it…
❌ Con: A lack of control can leave your fate in the landlord's hands at lease-end, creating uncertainty and instability. Moving often? Don’t forget the costs of moving and bond cleans—they can add up!
❌ Con: Limited by landlord rules, making the home ‘yours’ isn’t really in the picture.
❌ Con: Dreaming of a pet-friendly pad or a vibrant fuchsia feature wall? You might have to keep dreaming—unless your landlord says otherwise.
❌ Con: Pet ownership… need I say more? (we’re big dog lovers here)
Buying: Investing in Your Future or a Financial Ball and Chain?
✔️ Pro: Building equity with every mortgage payment—it’s like investing in YOUR future one month at a time vs someone else’s.
✔️ Pro: Fancy a change of scenery or trying a side hustle as a landlord? Buying doesn’t mean you’re stuck; you’ve got options like renting the property out or selling it later if you decide you want to move, plus potential tax perks if it becomes an investment.
✔️ Pro: No longer at the mercy of your landlord, create a home for you. Paint that fuchsia wall if you want to! Get the big dog, or the horse… whatever you’re into...
✔️ Pro: Owning a home means having a solid asset that you can leverage for future investments, future property purchases, lifestyle upgrades like cars, or even getting better terms on business lending. It’s not just a home; it’s a financial tool and vehicle to help you live the lifestyle you want.
❌ Con: Upfront costs can be hefty—think deposits, legal fees, and stamp duty. Want more details? Check out our ‘Key Costs to Consider When Buying a Home’ blog. Saving for this deposit is the largest hurdle for most home-owners to be, and we know it’s tough, but there are plenty of incentives to help you buy with a smaller deposit if its your first home to make it easier.
❌ Con: Maintenance is all on you, which can get pricey if you choose the wrong property. Be sure to read our blog on ‘Property Inspection Tips: What to Look For’ to help you choose wisely.
❌ Con: Market risk is real - Like stocks, property values can fluctuate, affecting your property value. Although The Australian Property market has only gone backwards 4 years out of the last 30 (1994 – 2024) and recovered near after. Property is still known as a relatively safer place to park your money in the long haul. Where do you want to park your money?
Deciding whether to buy a home or continue renting can feel overwhelming.
Ultimately, your choice should align with your personal circumstances, financial situation, and long-term goals.
If you're ready to invest in your future, buying a home could very well be the next step you could take towards a secure financial future.
Ready to explore your options and see if home buying is for you?
Let's chat and make your dream of homeownership a reality!
Your Broker,
Tara
