The ‘Great Australian Dream’ of owning your own home is becoming a far less likely proposition for young Aussies who are facing into ever-increasing property prices nation-wide. But is the battle for home ownership worth it?
The truth is, it’s far easier to rent a home than it is to buy one (well, most of the time that is!). Renting is not only significantly cheaper upfront, there is more flexibility, less paperwork, and there is much less commitment. Renting tends to suit singles and younger couples who aren’t ready to settle into one place, or who are still in the process of building their savings.
However, although there are plenty of reasons why someone might prefer to rent, including the fact that getting a mortgage is more difficult than it used to be, when it comes to making a decision between renting and buying, there are several upsides to buying that are worth a second look.
Although buying a home is a massive financial commitment, and there are risks associated with buying, here are some of the reasons why many people are inclined to jump on the bandwagon regardless.
#1 – Pride Of Ownership
Many of the reasons people decide to buy a property are financial, however, when you own your own home, whether you bought an existing dwelling or worked with a home builder to create something completely unique just for you, there is a huge sense of pride and achievement that goes along with it.
There is also the sense of security that comes with owning your own place. No more dreaded end-of-lease notifications, no more tenancy applications, and of course, having the ability decorate your home any way you want to and being able to have pets, tends to make the responsibility of paying off the mortgage more palatable.
#2 – Property Prices
It’s no secret that property prices in Australia have tended to rise solidly over time. Although there have been some dramatic falls, and there’s always the chance these corrections can happen again, overall, property prices have always picked themselves up and grown again. The key is time. Buying a property is an investment, and it’s one that can take decades to come to fruition.
In the meantime, you can enjoy the property yourself until the time comes to cash in and downsize or upsize. You may also want to use these years to invest in the property buy carrying out renovations and improvements.
#3 – You May Save Money
Paying rent is really just paying someone else’s mortgage, and giving them some profit on top. Ouch. This is why being a landlord is so preferable for so many people; your tenants pay for your outgoings, while anything additional is yours to keep as income (after tax, of course).
Other costs such as maintenance aside, it stands to reason then, that when you have your own mortgage, you’ll likely be paying less per month than if you were renting.
While initially, buying a house will leave you a lot more out of pocket due to the deposit required to obtain a mortgage, once that is done, your monthly payments will often be lower (and the bigger the deposit, the lower the monthly payments).
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