There are pros and cons to everything in life, and the same is true when it comes to owning property. If you’re weighing up the costs of buying versus renting, it’s good to know the advantages and disadvantages of both before making a final decision.
Buying
There are many advantages to owning your own home, the biggest of which is the long-term security it offers. You’ll have the comfort of a knowing a roof will always be over your head, you’ll be able to alter or make improvements to your home whenever you like and you could even make a profit should you choose to sell your property down the line. What’s more, if you decide to rent your space out to tenants, you’ll have an additional revenue stream to add to your personal wealth.
On the flip side, being a homeowner comes with substantial financial responsibilities, from monthly bond payments to rates, taxes and regular maintenance as well. You’ll have less flexibility should you ever consider moving and selling your home may not always result in a profit for you.
Renting
Being a tenant in someone else’s home offers a number of distinct advantages. Firstly, you’ll often be able to rent in an area that you may not necessarily be able to afford to buy in. You won’t be responsible for any maintenance or upkeep costs and you’ll have the flexibility of knowing that if you need to move out, the commitment to a lease isn’t as long-term as the commitment to owning your own home.
On the other hand, as a tenant, you’ll be restricted in terms of what you can do to renovate or improve your living space. You may have to liaise with a third party rental agent, which can mean that issues take longer to resolve. Paying someone else’s bond means no return on investment for you and when your lease expires, there’s no guarantee that it will be renewed.
At the end of the day, there’s no right or wrong answer when it comes to renting or buying. The decision is yours to make based on your needs and your budget. What’s most important is that you look at the pros and cons of both, and weigh up all the factors involved before signing on the dotted line.
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