When looking for somewhere to live, there are many reasons why renting may be a better option than buying. Avoiding unnecessary fees, not having to worry about (or pay for) repair jobs or renovations, and getting a return on your savings are just a few.
But one of the biggest benefits of living in a rental would undoubtedly be the flexibility and freedom that comes with it.
In today’s fast-paced society, we are all always seeking change, new and exciting experiences or the ability to take that amazing new career opportunity (i.e. travelling or moving towns/cities). But it’s hard to be spontaneous when you’re locked down to something, especially when this something is a house.
When you buy a home, you’re technically locking yourself into a 30-year mortgage – often with little to no intention of actually living there that long. This means that, at some point, you will have to deal with the process of either finding tenants to move in, or selling the house.
Renting, on the other hand, gives you the freedom and flexibility to move when and how often you like. Even if you’ve signed a full year lease and decide you want to move out sooner, your options are much less complicated than those involved with home ownership. For example, breaking a lease is a far cheaper and far less consequential situation to deal with than not being able to sell a property.
“The hardest to quantify reason to rent is that it gives you a bit more mobility,” says Aron Szapiro, a policy and finance expert with HelloWallet.
“Mobility has a real value in terms of being able to take a new job somewhere else and being able to control your commute.”
Not only does renting provide you with the flexibility to move as you like, it also offers you more time and money to spend doing things you love.
While most renters already associate with the mobility benefits, many also feel a sense of guilt for not owning a property of their own.
Propertyology Managing Director, Simon Pressley, says that more Australians are realising that ‘rent money is dead money’ is nothing more than a myth.
“The family home is a personal decision more so than a financial one. Renting doesn’t mean that you are destitute of assets. People are starting to wisen up to the best-of-both-worlds rent-vesting option. They are renting a property which often provides them with a better lifestyle than what they could afford to buy while also putting their savings towards a strategically-chosen investment property. Once rental income and tax benefits are taken into account, the cost to hold the investment is quite small and the investment potential is superior”.
Want to discuss the renting vs buying debate in further depth? Give us a call today to chat about your options.