Owning your own home is the ultimate dream for many Australians, but whether to buy or rent is still the never ending debate. So what are the reasons to buy versus the reasons to rent? Well, unfortunately with renting, you are not building any equity. The money you pay for rent essentially disappears. It definitely makes more sense financially to have the money you are paying out going towards paying off a large asset.
From a lifestyle perspective, owning is always going to be the best option. Renting comes with a big list of what you can and can’t do, which inevitably makes you feel like where you are living isn’t home at all. Plus, the fact that you can be forced to move at fairly short notice is always in the back of your mind.
These Are The Benefits Of Owning Your Home;
Stability and Security are major reasons that buying is so appealing. Not having to live with the ever present risk of being asked to leave is a big plus, it is hard to plan ahead when there is no guarantee that you will still be living in your current home in the future. Trying to decide on a school for your children, or even where you want to work is made harder because the stability of living arrangements is just not there.
The freedom of not having a landlord make final decisions regarding your home is truly liberating.
These are just a few of the perks of the benefits to buy versus rent in your own home:
- Never having to have rent inspections again is surely enough of a reason on its own to jump into home ownership.
- Being able to renovate or decorate as you please is life changing, if you want to paint your child’s room a different colour or hang art on the walls, it will finally be up to you.
- Owning a pet will finally be an option, and no pet bond required.
Owning a home is also a great long term investment strategy. House prices will typically rise over an extended period of time. Although you won’t make money quickly, if you stay in your home for a good few years or until you pay off your mortgage, you will come out ahead financially.
Building equity in your home is another benefit of owning your own home. Equity is basically the portion of your home that you have paid off, or already own. If your home value increases as you pay off your loan, the equity will steadily grow, and can be used towards buying an investment property or other investments. It is also a great financial safety net.
Home ownership also allows you to build a credit history. Having a good credit score means you can borrow the funds you require to buy the things you really want or need in life. The best way to build your credit score is to take on a long term investment, such as buying property.
Getting off the rental merry go round is very exciting. Your future plans and goals, personal circumstances and of course financial situation, should all guide your decision making. Dreamstart Homes are able to guide you through the whole home building process, from start to finish. With options for getting into your own home starting from just $270 a week, there is no reason to put your home ownership dreams on hold any longer.
If you have any questions regarding the reasons to buy versus rent, or are looking to get started on your first home buyer journey, why not get in touch with our friendly team, today?