For many, getting themselves into the property market through home ownerships is the goal. However, it may not always be the best option suited for every individual. Here we take you through the pros and cons of renting in comparison to buying in Victoria.
Renting – The Pros!
Renting is a largely saturated market, and one of the main reasons is due to the reduced financial stress in comparison to buying. Before you even purchase a home, you have to save for a deposit, which then turns into a mortgage once acquiring a property. This can take a lot of time, sacrifice and commitment.
In comparison, when renting, once paying the rental bond and potentially a couple of weeks rent in advance, the only thing to now pay includes the rent itself and utilities. Renting allows you to have the freedom to move when your lease ends which is highly appealing to those who may not be ready to settle down in one place.
Renting – The Con’s
While there may be less financial pressure compared to having a mortgage, there is also no asset growth in renting.
The current property market has also seen interest rate hikes affecting prices of property. This means once your lease ends your rental payments could increase, which in turn may leave you unable to afford the current property you are living in. This lack of security alongside your landlord being able to end your lease at their discretion are some things to think about when it comes to renting.
Buying – The Pros!
Purchasing property is investing your money in an asset that is likely to grow in the future and potentially give you financial gains if choosing to sell down the track.
Government grants are available to help this happen. Including the First Home Buyer scheme giving individuals purchasing a property of up to $750,000 for the first time $10,000 to contribute towards this. First Home Buyers are also exempt from paying Stamp Duty on homes up to $600,000.
By purchasing a property, it also means you can make as many or as little changes to it as you like without getting permission from a landlord. This is where the freedom comes from when buying over renting.
Buying – The Cons!
Before you buy a property, you have to save for a deposit. This can take time. It is also a commitment and financial responsibility that if not obliged to can have consequences such as repossession of your house. Buying a property also entails upkeep, including maintenance expenses you may not have when choosing to rent.
While there are many things to consider regardless of whether you choose to rent or buy, our team can help you along the way. With specialists in both sales and property management, you can know you will be in trusted hands when making a decision. Please reach out to our team today! They would love to help you through the process.