Renting vs. Buying.

So you’ve been renting property and are finally financially able to purchase your own. You may not be sure though, whether or not you should continue to rent or to take the plunge and buy, here are some pros of each to consider which may help you to make your decision.

Rent vs Buy

Renting Pros:

  • Renting is less of a commitment, so if circumstances should arrive whereby you have to quickly relocate, such as a job change, you can leave far more easily than having to go through the process of putting your house on the market and finding a new one elsewhere.
  • Your insurance worries will be limited to only your own contents, rather than worrying about insuring the entire property.
  • You save on maintenance costs, as landlords are responsible for maintenance of the property you rent.
  • Renting often allows you to live in a property in an area that may be too expensive to actually purchase in.

 

Buying Pros:

  • The value of your home will increase over time, so that if and when you decide to sell your property, you should make a profit.
  • When you own a property, you can have more freedom in when it comes to adding on to your home and changing it to meet your tastes.
  • You can buy a property to rent out, which is a great way of making easy, passive income.
  • You have the security of knowing exactly how long you will stay at one place, whereas with renting, a landlord may suddenly decide to sell the property you rent.
  • You can benefit from various income tax deductions (investment properties).
  • If your property has appreciated in value, you may be able to refinance your property should you suddenly need to come up with a large sum of money to pay for unexpected expenses, such as hospital bills if you are in an accident.

 

A great book to start with if you are considering purchasing your own property is Goodbye Renting by Tracy Lee Harvey.

Goodbye Renting provides some long awaited help for people struggling to get into the housing market. At a time when housing prices have soared, demand for rental premises is at crisis point, when homelessness is on the rise, interest rates keep climbing and first home owners have become disillusioned to the point of giving up … there is some light at the end of the tunnel.

Goodbye Renting


 

Jason PennaAbout Author

Jason Penna

Jason is director at Australia's leading property investment book website Propertybooks.com.au. He has worked as a financial adviser for over 10 years in institutions such as Suncorp Metway, Medfin and National Australia Bank. Jason has a passion for property and online investment and has a number of real estate property investments and online investments. He holds a Diploma of Financial Advising from the Securities Institute of Australia.

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