Making the choice to rent or buy can be a difficult one, there are pros and cons to both options. We have written this blog to hopefully shed some light, and maybe make your decision slightly easier.
Should you Rent?
Many people gravitate towards renting a home, you may fall in love with a rental, you might not have the affordability to buy yet or you might just not be ready for the commitment of owning a home. So what are the pros and cons?
Pros:
No maintenance or repair costs for the property.
Providing you didn’t cause it. We all know that in some cases when it rains, it pours. Sometimes this can be the case with maintenance issues. For general wear and tear or repairs, it isn’t your responsibility to pay those costs
No taxes or property insurance!
You won’t have to fork out any taxes related to the property, or insurance. However it is still always recommended you have contents insurance.
No huge deposit.
Buying can be costly, one of the biggest being a large down payment. When you decide to rent, although you still pay a bond and a few weeks in advance, it is still significantly less than a deposit on a home.
Flexibility.
If you have a small unit, and decide to start a family it is relatively easy to up and move to something more suitable. Same concept goes for downsizing, it can be much more simple if you are not a homeowner.
Cons:
You are paying someone else’s mortgage.
While some people do not see it this way, nor care. It is still a factor, you are paying off someone else’s investment.
Lack of security.
In many cases rental properties are secure, and often tenants reside in the same one for years. However, if the owner decides to sell, you could be searching for another property and having to up and move with short notice.
No pets.
Some rental agencies or owners do not allow pets. Many families and great tenants have pets, and this can limit you when searching.
Should you Buy?
It can be scary making the leap into becoming a homeowner, but it can also be very rewarding. You might want to have full control over your home, or maybe be able to change and decorate however you want! But what are the pros and cons?
Pros:
Stability.
Owning a home gives you a feeling of security and stability. Having a stable home can definitely provide less stress and make you feel more comfortable than if you were in a rental.
Freedom.
You will have complete freedom to decorate, renovate or change anything you want. You can also have pets without having to ask (providing you are not part of a strata) Being in a rental confines you in what you can do, if you own the home you make all the choices.
Tax.
You are able to deduct mortgage interest, and build equity at the same time! This is not an option when renting.
Value of your home.
Investing in real estate almost always pays off, your home is more than likely to increase in value over time.
Cons:
More responsibilities.
If any maintenance or damage occurs, you are entirely responsible to cover those costs. This can be a downside if you continue to have issues arise.
Expenses.
Overall buying initially is more expensive than renting. You have a down payment, taxes, your mortgage and more. But keep in mind it is an investment.
Less flexibility.
When you settle and buy a home, you are somewhat constricted. You might love your home and never want to move, but others thrive on change. Although you can still sell and move, it is a much more costly, difficult and timely process in comparison to renting.
There are pros and cons to absolutely everything, you just need to decide if the pros outweigh the cons. Everyone is different, renting may work for some and buying will work for others. So ultimately there is no “better” option. We hope this list can help you weigh them up and see what might work best for you!
DISCLAIMER
The following advice is of a general nature only and intended as a broad guide. The advice should not be regarded as legal, financial or real estate advice. You should make your own inquiries and obtain independent professional advice tailored to your specific circumstances before making any legal, financial or real estate decisions.