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Buying a property, whether it is an apartment or a house, is pretty daunting.
"Deciding to buy" will get you prepared with valuable information on financial
and legal matters.
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Buying Vs Renting a Home - What is best for you?



Benefits of Buying a Home



Although it’s not cheap to get into the property market, it may be more expensive to stay out of it i.e if you want to own a home in the future, it may be best to get into the market sooner rather than later. Many analysts say we should continue to expect capital gains in property in excess of 10 per cent over the next two to three years.

If you are smart and choose a good suburb, with growth potential and good
amenities nearby, you should see growth in the value of your property and your investment. Of course, your first home may not be that huge family house you’ve always wanted – and that’s okay. It’s not called your first home for nothing; it is simply your first move onto the property ladder!

According to the Real Estate Institute of Australia,
the benefits of buying a property include:

  • Building up equity in a home by making regular mortgage payments is one of the best ways for many people to save a large amount of money over time.
  • Unlike rent, the money you spend each month to pay the mortgage goes directly towards purchasing your own valuable asset.
  • Home ownership is usually a safe way of investing money over a long period and, depending on location and other factors,the value of the asset may appreciate over time.
    When you own your own home, you no longer face problems associated with renting – no visits from the landlord, no need to renew a lease every 12 months or so.
    Many people anticipate that owning their own home will make things easier when they retire.

Benefits of Renting a Home


According to the 2006 Census, 27.2 per cent of Australians rent their homes – that is more than two million households. While for some people renting is the preferred option as it’s cheaper, for others renting is a lifestyle choice.

Some advantages include:
  • Renting is cheaper than a mortgage.
  • Renting is also flexible, a good short-term commitment and fairly uncomplicated. If you want to change jobs or careers you usually only need give your landlord a month’s notice, and then you can move out.
  • Landlords are responsible for underlying problems with the property, not tenants.
  • Renting is often about lifestyle – you may be able to afford a better house to rent than you could afford to buy.


Disadvantages of Renting a Home


Disadvantages associated with renting property, include:
  
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  • Over time rents tend to rise.
  • There is the possibility of being evicted
  • Landlords could decide not to renew a lease
  • Lack of control over making alterations to a property.
  • If the housing market goes up you’re not part of it, but your rent may still be increased.
  • Renting is also, in one sense, ‘money down the drain’: rent paid to a landlord will never be seen again.

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