As you probably know by now, property prices are rising and it’s not going south anytime soon. Housing affordability has been an ongoing concern especially for first time buyers. If you’re contemplating if opting to purchase a home is better than renting, then you’re on the right page.
Many of the Gen Y’s has been worried about missing out on opportunities to buy real estate especially with the housing market in Australia continues to rise. There are pros and cons of renting and buying a house. However, it’s up to the kind of financial situation you are most comfortable with.
Benefits of Renting
The obvious bonus for renting is because it gives you the flexibility for relocation. Unlike purchasing a house, you don’t have to worry about being relocated especially with job demands. Compared to buying a house, renting let you cut down expenses that homeowners need to pay like government fees, homeowner fees and mortgage loan.
If you’re still a young professional and have yet to stabilize your finances, then renting would be a cheaper option. For individuals who are working in highly populous and thriving cities, then renting might be best until such time that you can take off in your career. Although you may be anticipating rents to increase, this is a better option since it is still lower compared to paying off mortgage.
Benefits of Owning a Home
With owning a property, you have control with what you do to your property. Renting gives you little say to how long and what you can do with your space. Furthermore, once your lease expires, your landlord may not want to continue with your lease if he or she prefers. This may cause distress and consumes time to look for another space to rent.
Anticipate that by owning a property, you will shoulder all maintenance cost and repairs. You have more control on what you do and how you’re going to use it. For some savvy young professionals, a property is an investment because it can produce cash flow by placing it for rent. This way, you are earning passive cash flow with occasional repairs every once in a while.
Consider Planning Before Purchasing a House
Planning is essential to keeping your budget in place. Though the task can be overwhelming, a plan keeps you from purchasing for the wrong reasons – and the wrong rates.
If you’re considering Australia, professional real estate agents Narre Warren will help you find properties with the best deals. Since professional real estate agents are keen to know about the market, it might be best to talk with them first before you do your property ‘shopping’. It might be best to do your own checking as to the kind of neighbourhood you might want to stay in Narre Warren.
Having a financial advisor may be beneficial to check whether you have enough money to afford a house. What is your budget range? What are the investments you can pool your money to be able to purchase your house for the next 3, 5 or 10 years? It may cost you a fee but having a professional do this will cut down time and get your money rolling on a faster track.