The renting versus buying argument is a frequent topic of debate. Yet, it’s easy to think the buying argument is the winner.
After all, owning property makes more sense financially right?
Well, you may be surprised to know there are some circumstances when renting is in fact more appropriate and affordable.
Here we break these circumstances down and provide you with an accurate answer to the key question: Should I Buy or Rent?
But first, let’s take a look at some of the key advantages of both options.
The Advantages of Renting
Let’s make something clear: renting isn’t all doom and gloom.
You obtain many benefits from renting that are simply non-existent when buying a property. These range from the faster process, all the way to the cheaper maintenance costs. Let’s take a look at some.
No Down-Payment Needed
This is the biggest advantage of renting. With a good, stable income, you can visit us today and discuss renting with one of our agents.
What you have in your bank account doesn’t matter.
No 20% deposit on the property is necessary, and there are no worries in wondering whether the bank will lend you money.
Some landlords may ask for your first and last month’s rent at the time of moving, but even so, the difference in cost between that and a 20% deposit are significant.
We’re talking thousands!
Freedom-of-Movement
Let’s face it, some areas are more expensive than others to buy property in.
So imagine this, you pick the most beautiful Brisbane home and move in, but you discover you don’t like the area.
With a mortgage moving out is a whole can of worms. Renting, not so much.
You may have a lease with renting, and you may have repercussions with your landlord in breaking that lease early. But, those repercussions won’t be as long or enduring as needing to resell your property. Especially if you get caught in a chain.
With renting, you’re on a loose string that can easily be untied. You have more options to explore different areas.
Less Upkeep and Expenses
Depending on your landlord, with renting you might find your utilities paid for. Perhaps you only have to cover the water bill and your landlord will cover everything else.
You’d never have that when purchasing a property.
And that’s not all.
For example, if the electricity stops working, as a renter, it’s not your responsibility to fix the issues — it’s down to your landlord.
Now, some properties may charge a monthly maintenance fee or a management fee. But, you can work that into your budget and find yourself secure in the knowledge that it’s all you have to pay.
You never have to worry about surprise costs from damages to the property outside of your control.
Again, that’s on your landlord.
The Advantages of Purchasing
Purchasing comes with key advantages, too. More so than the great feeling that comes with owning your own home. Let’s explore three of these next.
Building Equity
The more payments you make on your purchased property, the more equity you gain.
In other words, you own more of the house.
This means as time goes by you can reduce payments, and even save money when you pay off your entire mortgage. This is something that will never happen in renting.
Not only that, but you can work on your house and build its value in coalition with the fluctuating market; so when you eventually do sell, you’ll make a strong profit.
This takes us on to our next advantage of property purchasing.
Freedom
This time, we’re talking more about freedom within your property. Not the freedom-of-movement you gain with renting.
What do we mean by that?
Want to paint the walls? Go right ahead. Fancy knocking down a wall to extend the kitchen? Sure.
When renting, you have to ask the landlord permission before undertaking most tasks. In fact, we know of one rented property where the tenant isn’t even allowed to change the blinds without the landlords permission.
Can you believe that? If a landlord wants something in the property to remain untouched, then untouched it must remain. With purchasing, what you do to your home is entirely up to you.
Stability
Everyone’s heard of tenants being evicted from their property. It may be due to default payments, or it may simply be due to the fact the landlord wants to resell the home.
In renting, you never know when your last month in your property may be.
And isn’t that a horrible feeling? Imagine if you’re in love with your home, but the landlord knocks on the door and says to you he needs you to leave. It can not only ruin your day, but it can ruin your life, too.
With owning your property, you will have peace of mind and never need to worry about that. Your property belongs to you, and as long as you keep paying your mortgage, it will stay that way forever.
The Bitesize Comparison
We’ve gone over the advantages of both, so let’s condense that into a handy table.
| Renting | Purchasing |
|---|---|
| No deposit needed. | Up to 20% deposit needed. |
| Must ask permission to renovate. | Can renovate at will. |
| Some bills may be paid for. | Bill payments responsibility of homeowner. |
| Landlord can evict tenant. | Homeowners are stable in the knowledge that they won’t ever be kicked out. |
| Easy to move out from. | Harder to move out from. |
| No equity over time. | Builds equity over time. |
So Which Is Better: Buying Or Renting?
The truth is, neither buying or renting is better.
Despite popular belief, there’s no shame in renting, and doing so even comes with its own benefits — such as the aforementioned freedom-of-movement.
The best way to know whether to buy or rent is to know your own situation.
And Calibre Real Estate are here to help you with that.
We’re passionate about the housing industry, and guiding others in making this key financial decision of buying or renting.
If you’re searching for a new agent in North West Brisbane, then you’ve struck gold.
Reach us on 07 3367 3411 today.
