At some point, nearly everyone is confronted with this dilemma. Since most people usually start out renting a house, it is a question of whether or not to make the leap into the responsibility of home-ownership. Both sides of this coin have their own sets of benefits and pitfalls, let’s have a peek at both sides before you make the leap into a mortgage.
The Bad
Let’s take a look at some of the drawbacks of renting. First and most obvious is the fact that when you rent, it isn’t really your place. You are paying another person’s mortgage every month in exchange to occupy that space. Plus, you are paying someone else’s mortgage without reaping any of the benefits and you’re monthly rent can raise with minimal notice.
You usually can’t change the way the place looks – you must ask before you paint or make other lasting alterations. If an appliance or the like needs replaced, the tenant rarely has any influence in the style or quality of the replacement. When you rent, there is no guarantee that you won’t be asked to leave. Whether the landlord decides to sell the place, or they want to let their friend or family member move in instead of you, there is no permanence.
Owning has its negative aspects as well. If you are a home-owner, you don’t have the luxury of ringing the landlord when the drains clog, the roof springs a leak or you discover a crack in the foundation. There are other often unexpected issues to arise such as maintaining landscaping or having trees pruned. Depending on where you live, you may also be required to pay body corporate fees.
The Bright Side
As a renter, there are bound to be times when you found it a relief that you didn’t have the obligations that accompany home-ownership. If the need to relocate arises, you don’t have to worry about selling your house or deal with the hassle of renting it. Noisy neighbors move in? A huge construction project begins across the street? Kids need to attend a different school? No problem, it’s not your place.
To have a house to call your own means you have a valuable asset. One that can be improved upon to increase its worth. One which can appreciate and make you money.
Home-owners can often enjoy certain tax breaks such as deducting their mortgage and property tax paid throughout the year. A certain level of stability can be found in your monthly mortgage payment if you secure a fixed-rate mortgage loan.
Beyond the financial reasons, an important benefit of home-ownership means that you can be a part of the community. Knowing that you won’t be forced to leave lets you put down roots and become involved in the neighborhood which you help comprise.
There are good arguments to be made for both renting and owning a home. It is important to carefully evaluate your lifestyle and needs to assure that you explore the options that are best for you. If you have weighed up the pros and cons and decided that it’s time for you to buy, a Clear Path Variable Home Loan from BOQ may be the right solution for you. It offers a competitive interest rate and flexible repayments which can help immensely as you adjust to your new life as a homeowner.
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Renting Pro: Not your house, if I break something I don’t really care.
Owning Con: Renters don’t treat your house like they own/care about it. You have to deal with the aftermath. Also, evicting a renter can be trickier and sometimes much more expensive then you could imagine. (Right now I’m tired of my tenants. ha!)
Also, congrats on the babies! They look adorable!
I don’t think I could ever go back to renting again, but it wasn’t so bad when I had to. I like to own so that I can decorate the way I want and paint!
Such a great post! I think most people struggle with this dilemma at some point. I know I do! For me, it’s easy – no house until my student loans are paid off. When people ask me why I don’t own yet, I say because my student loans are my mortgage!