Australians are well known for pursuing their dream homes, which is why many people have heard the expression, “rent money is dead money.” Having said that, housing affordability is a bigger problem every year, and people are wondering more and more what they should opt for—to buy or rent a house.
In this article, we’ll share some pros and cons of both choices so you can make the best decision for you.
The Pros of Renting a Home
Think we all know that owning a home in Sydney is a luxury.
Usually, renting is more affordable than owning a house, and you can find plenty of houses for rent in Sydney. Renting lets you live in a nicer area where it might be more difficult to own a home.
Flexibility is the biggest perk of renting a home, particularly for younger city dwellers–you can relocate to a new home whenever you want and without too much hassle. It’s not easy to pack up everything and move when you own a house. You can sell or rent your home, but that can be a massive undertaking.
As a renter, you can easily move out and welcome a change in your life, be it moving to a different city for your career, following the love of your life, or just going out on an adventure. Done with a roommate or a neighbour? You can always move.
No Expensive Maintenance
As a renter, maintaining your home is a headache you get to avoid. It’s the landlord’s job to pay for repairs, fees, maintenance, and home insurance or contemplate renovation ideas for rentals in Sydney. Of course, if you damage something, your landlord may deduct the cost of the damage from your bond, but as a renter, you escape the larger unexpected costs.
The Cons of Renting a Home
When renting a home, you’re at the mercy of your landlord; this can make renting unpredictable. Your landlord can decide to sell the home or raise the rent, and tenants don’t have much say, if any, in that decision. Your landlord can ask you to leave home when the lease expires or even end the lease early, leaving you to unexpectedly have to hunt down a new home and relocate.
When renting, you can’t make changes to your home to improve your space without your landlord’s permission. Some landlords won’t even let you paint or hang your favourite artwork if it needs to be mounted to the wall.
Another challenge with renting a home is its increasing cost. Although renting is a cheaper option temporarily, as the value of properties increases, rents continue to rise. Furthermore, renting isn’t an investment, but most people can claim home ownership after paying their mortgage for twenty-five to thirty years.
The Pros of Buying a Home
More Stability and Freedom
Buying a home offers more stability and freedom as no landlord can displace you because they want to sell the building or raise the rent, and while living in your own home, you can renovate and decorate your home as you like.
Increase in Prices Over Time
Homeownership is a long-term game, and investing in real estate in Sydney is a promising proposition. By buying a home, you gain an asset that will likely increase in value over time.
The Cons of Buying a House
Significant Interest and Fees
Buying a home is more expensive than renting. Even in cases where renting and mortgage repayments are the same, you have to pay for things like maintenance, body corporate fees, and council rates. Further, ever-fluctuating interest rates and unexpected costs can burden your finances.
Depreciation in Value
A home is a financial asset, but the value isn’t guaranteed to go up. Making a bad decision on home decor or maintenance can cause a drop in your home’s value and if you ever decide to sell, you’re at the mercy of the property market.
There’s no simple answer to the never-ending debate of buying versus renting a home. There are many factors at play—your finances, dreams, lifestyle, needs, and goals—and it’s always a good idea to talk to an expert before making any big decisions.
Of course, for the best options when it comes to Sydney home rentals or homes available for purchase, Soho has you covered. Check out our website and shortlist your favourite homes today!