4 Reasons you Might Consider Renting
There are many benefits to rentals
Flexibility is Fun
While owning a home is the dream for many Australians, for an equally large number of people it is also something that's not likely to be a reality any time soon. The cost of a home deposit can be prohibitive, and owning a home means a lot more permanence than you may perhaps be ready for. With this in mind, let's take a look at renting in Australia: Why might it be a great move?
When you buy a home, you are tying yourself down to a property for the long term, especially when you consider the length of a home loan. However, by renting, you are free to move about much more easily. Leases often are open-ended or renew annually, meaning you have freedom to move to a house that suits your needs more appropriately as you see fit.
While the Reserve Bank of Australia has not changed the cash rate in quite a while, there have been some commentators predicting changes afoot in 2015. This can affect mortgage payments, especially if you have a variable rate home loan.
However, when renting, you have a fixed amount of rent to pay each week, fortnight or month. This can change when a lease is renewed but generally, you know exactly what you will pay, allowing you to budget very effectively.
Owning a home means taking responsibility for damages and repairs that need to happen. However, when you rent, the responsibility for much of this falls to a landlord. Make sure you are dealing with someone who will work efficiently and correctly, and you will not have to worry about the general wear and tear on your home at all!
Of course, there are limitations. As Tenants NSW notes, you shouldn't willfully damage anything - but if you do, let the landlord know as soon as possible! There are responsibilities on both ends, and if you forge a good relationship then you should have a fantastic time as a tenant.
Access to Luxury
We all want to be able to have a pool or large park area at our home, but that can be prohibitively expensive. By renting, you may be able to secure a home or apartment that has these amenities on-site, at a fraction of the cost of a down-payment on a home.
What's more, renting can enable you to live in central locations where buying prices can be well out of your range.
There are many advantages to renting, and it's important to weigh up the pros and cons before you leap on ahead into either a home loan or a tenancy agreement!