5 Ways That Renting May Be A Better Option Than Buying
It is one of those cultural norms that is ingrained in just about every Aussie from a very young age. But is it that important to become a homeowner? It may come as a surprise, but it’s actually not. Some experts suggest that renting properties could be a better option when compared to buying a home, especially when it comes to the Millenials. Here are five great reasons to rent rather than purchasing a house.
For Building Designer Rick Buick, “renting a home is a wiser financial choice for those that cannot keep up with the costs involved to purchase a home.” Assuming that you study or work in one of the areas where the housing is not affordable, where you would be paying a mortgage of $3,000 a month for one of the mid-class homes, renting might be your only chance to secure a place to stay. Renting a home in this category could be as much as $1,000 cheaper. For example, a renter’s insurance usually won’t exceed $20 a month, yet it still covers every valuable possession in the property. In comparison, the standard homeowner insurance policies can reach up to $80 per month.
The values of properties are constantly fluctuating. When you own a home, an unstable housing market has the potential to interfere with your finances. When you rent a home, you only have to worry about covering your rent every month, which will also remain constant throughout the duration of your lease agreement, regardless of how bad the real estate sector gets.
Michael Yousef from All Image Architects believes that “when you rent you have more flexibility to live and move to anywhere you please. This is not one of the luxuries that homeowners can afford since they are tied down to where their home is”. For example, you may have the option to rent one of the high-end apartments in a thriving urban neighbourhood that provides convenient and easy access to every social amenity that you may need. This is even possible when you don’t have enough cash flow to purchase a property in one of these neighbourhoods.
Things may be going great today but may change very quickly tomorrow. What would happen to your house if you decide to go your separate ways, especially when you are both paying towards the mortgage. These are issues that can result in lengthy and often extremely expensive litigations. But when you rent a home, your disgruntled partner could move out pretty easily, without serious financial or legal implications.
Renting properties allows you to downgrade and/or downsize when you need to. Due to the maintenance costs and expensive tax obligations associated with big homes, the best option for you may involve downsizing to a more manageable property. If you are facing unexpected financial problems, you may be forced to downsize or downgrade. Regardless of the reason, renters have it far easier when it comes to making such adjustments when compared to homeowners.
If those are enough reasons to convince you that renting might be better than buying a property, then we’re pleased. At Crash Realty we love sharing information with our community so they can do a better use of their finances and because, of course, we like sharing our passion for real estate with the people who trust our services.