Few decisions impact your lifestyle, personal goals, and financial health than choosing to rent or buy a home.
This post will look at the pros and cons of these two options. You’ll soon have a keener understanding of whether you should rent or buy a home.
Pros and cons of Renting
Pros of Renting a Home
Affordable
Depending on where you live, renting is often cheaper than owning a home. Flexible
One major advantage of renting is having the flexibility of moving whenever you want to. Fewer Maintenance Responsibilities
Unless you have caused the damage, your landlord is responsible for covering the property’s general maintenance and repair. Your landlord also handles home insurance and council rates costs.
Cons of Renting
No Investment Potential
Regardless of how long you pay rent, you will never own the house. Limited Home Freedom
With renting, you can move whenever you want. However, renting restricts the number of renovations you can make to the house.
Pros and Cons of Buying
Pros of Buying a Home
Wealth Creation
Your home’s value might increase over the long-term, depending on the property and local housing market. By buying a home, you could be building wealth for the future.
You even have the option of renting the house out and generating an alternative source of income.
Personal and Financial Security
Buying a home offers more security than renting. Owning your own place frees you from the risk of being forced to move simply because the rental agreement expires.
More Freedom
Buying a home gives you the freedom to make renovations. You can custom-fit your house to suit your needs, style, and preferences.
Cons of Buying
High Costs
Buying a home includes large upfront costs. Additionally, homeowners have ongoing costs they must cover such as general maintenance, insurance, and council rates.
A Home’s Value Might Decrease
Your home might decrease in value over time, leading to your losing money in the long run.
What’s the Better Option: Renting or Buying?
There is no outright better option between the two. The stronger choice for you depends on your financial situation and personal goals. Some might find it more beneficial to own their home while others prefer the ease of renting.
If you are interested in renting, the experts at Active Agents can help you find the perfect rental property. Call us today on 1300 141 446, tell us your specifications, and let us find the perfect home for you.