Renting Vs Buying, that is the million doller question. The decision to rent or buy a home can be an overwhelming one. Many factors need to be considered when deciding whether it is better for you financially and personally to rent or buy your own home. The decision to rent or buy a home can be an overwhelming one. There are many factors to consider when choosing, but the long-term commitment to buying is often enough for people to make their final decision. There are many reasons to buy a home instead of renting. Some people have the misconception that renting is cheaper, but this isn’t always true. Buying can be more economical over time.
The following are benefits of buying over renting:
1) Price appreciation
Buying a home will typically see an increase in price over time while renting generally does not. This means that buying is the more secure option of the two for capital growth. If you are firm on saving and robust on patience, this might be an option to consider.
When you buy a home, and it is your primary place of residence (where the majority of your living costs will be), you can claim your interest repayments and other expenses on the property against tax. If you rent, however, these expenses cannot be claimed. This tip alone can save considerable amounts of money each year.
3) Building equity
As you gradually pay off your home through insurance, tax, rates, and general maintenance costs, more of it belongs to you. Essentially, this means that you build equity (the difference between how much is owed on a property and its market value) every time you make payment. When selling your home in the future, you can either borrow back the equity or cash in your investment.
4) Flexibility of location
When renting, you are somehow restricted to where your landlord will allow you to live. When buying, you have more flexibility on where you choose to live within the constraints of how much it will cost each week/month. If there is somewhere, you want to live, but your rental is increasingly high due to its location, buying allows for this flexibility.
5) Choice of home style
It is generally not an option to change the property when renting because it does not belong to you. However, there are many options regarding how you want to live when owning your home, from creating a granny flat to add a pool.
6) No more paying rent
This is the ultimate benefit of buying over renting. When you own your home, you are not required to pay out an additional sum on top of all other living costs for someone else’s property every week/month. This money can be allocated to other expenses such as food, petrol, clothing and so on.
7) Flexibility of tenure
This benefit hinges on the assumption you only want temporary accommodation – that is, you don’t necessarily want to live there forever. When buying a home, it is an option – though not always – to sell the property at any point and not have to pay the penalty, whereas when renting, there is generally a small fee for ending the tenancy.
8) No more lease-breaking fees
If you buy your home but later sell it, you will still have profit from the capital growth. In comparison, if you rent and then try to break your lease agreement, there may be significant charges involved, especially if the property is not on the market.
9) Peace of mind
This ties to the security provided through owning your property. When renting, it can feel like you are constantly living out of someone else’s home and never truly call anywhere “home.” This is because you don’t have ownership over the property, and the only place you can truly call home is where you feel safe and secure.
10) No more moving costs
When renting, should you wish or need to move for whatever reason (the sole tenant of the property has passed away, it needs repairs), there are likely to be significant costs involved in breaking your lease agreement. When you own your home, you don’t have to worry about breaking a lease and moving costs – it’s your property, and all of the associated costs are covered by ownership.
Buying is better than renting. The benefits of owning a house are numerous and can be felt in every aspect of your life. Take the time to consider how much you value independence, privacy, security, stability, and all that comes with it when deciding whether or not buying is for you! If you want to sell your property, contact Single Tree Team Real Estate or visit our website, and we can help you on how to sell your property.