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Renting vs owning your own home

What's the difference between renting and owning?

Reasons to own versus reasons to rent

Why own a home?

1. Saving through equity

You won’t be throwing your money away when you buy a home. Paying off a mortgage is one of the best ways to save large amounts of money over time. That’s because your monthly repayments help you gain equity in your home.

2. Stable housing costs

Inflation causes most things to increase in price over time. But if you choose a fixed rate mortgage, your repayments will remain around the level originally agreed. This really helps you to budget for the future.

3. You’re the boss

When you rent, you’re under the control of a landlord. That means rent inspections, renewing leases, possible eviction notices and restrictions on pets. You make the rules in your own home.

4. Endless possibilities

The biggest reason to own your own home is the freedom it brings. You’re free to decorate, renovate, have pets and change whatever you want. Because it’s all yours.

 

Why rent a home?

1. Monthly rent is less than a mortgage

You may be able to get a rental for a bit less than what you would pay if you were buying; you might even get a great deal where your rent doesn’t rise for a year or two. But eventually rents go up and so will house prices. You don’t acquire equity when you’re renting, so all that money pays for today, but doesn’t give you anything for tomorrow.

2. You don’t have to pay maintenance costs

Depending on your lease agreement, you may be required to do less maintenance on the property you rent. Even so, if things start to go wrong, you’re left waiting for your landlord to do anything about it.

When you own a home you’re responsible for its upkeep and maintaining the ongoing value of your prized asset. But if you buy a new home, it comes with warranties, so it’ll be ages before you’ll have to worry about the kind of maintenance usually required on old rental properties.

3. If you don’t like it, you can always move

In theory, if you don’t like your rental you can move somewhere else. But then there’s the hassle of losing some or all of your bond, negotiating with the landlord, and trying to find another available place.

If you own a home, you’re always able to move when you’re ready. Especially when the market is right and you’re making a profit that helps you upgrade to a bigger home or a location you prefer.

 

Getting your first home is easy with Aussie Living Homes. Take our Rent vs Buy Quiz to see if you can get your own home for what you pay in rent.

Rent vs Buy Quiz

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