Home ownership is the great Australian dream.
The recent boom in house prices showed just how effective property can be as a means of building wealth. But rising house prices have also made home ownership less affordable for thousands of Australians. So are you better to buy or is renting the way to go?
Deciding whether to rent or buy means weighing up your financial, lifestyle and personal goals.
The case for renting
Renting a home offers many advantages. In most cases, your weekly rental will be cheaper than paying off a mortgage (assuming you pay the usual 10 to 20 per cent deposit). Renting is also more flexible and less complicated. If something goes wrong, the owner pays to fix it, not you.
Renting is also about lifestyle. You might be able to rent a nice flat in Bondi or a townhouse in Clifton Hill or a house at Glenelg, but could you afford to buy it?
However renting also has some disadvantages:
The case for buying
The obvious advantage of buying a home is that you are investing in an asset that should grow in value over time. Moreover, each mortgage payment brings you closer to owning your home outright.
Home ownership gives you security and control. You can alter your home whenever you like. And the high repayments in the early years of a loan force you to save money you might otherwise splurge.
Disadvantages of buying a home include:
saving a big enough deposit
lack of flexibility (high cost of selling and buying are a disincentive to moving)
maintenance costs
being able to afford to live where you most want to.
Please contact the lending professionals at APO Finance to discuss all your loan requirements.
Call 07 3387 2200 or
Contact Us by clicking here.
