Thinking of ditching your rental property and becoming a home owner? It’s an exciting step to make, but you need to make the right decision. The real estate market is ever-changing and it’s important to consider all the latest information before you decide whether to rent or buy.
The pros and cons of renting
Renting a property has both advantages and disadvantages.
There are many pros to renting a property. Firstly, you have the ability to live in an area that you can’t afford to buy into just yet, and you can potentially build your savings in the meantime.
You also have the opportunity to downsize should personal circumstances arise, and you’re not locked into paying off a home loan.
Given that you don’t own your property, renting can be unpredictable at times. You have no certainty of your tenure and can be forced out of your home if your landlord decides to sell.
There’s also a greater lack of privacy given the fact that you are subject to regular inspections, and you have restricted freedom when it comes to decorating your house.
Another disadvantage of renting is the lack of investment potential. When you’re buying a property, you make weekly or monthly repayments until your home loan has been paid off.
When you’re renting on the other hand, your payments never stop, and you’re essentially paying off someone else’s mortgage instead of your own.
The pros and cons of buying a home
Buying your own home also has positives and negatives.
Among the many pros of buying a home is the security of owning your own property. With no rental agreement, you can rest easy knowing that no one is able to force you out of your home.
You also have greater freedom when it comes to making the space your own. You can renovate, paint, put nails in the walls and landscape as much as you want to without needing to get permission from a landlord.
Another big advantage of buying a house is the concept of enforced saving. By making regular home loan repayments, you’re putting money into your property instead of spending it.
It’s also a better investment option given that you’re paying off your own mortgage rather than someone else’s.
One of the biggest drawbacks to buying a home is the amount of savings required for a deposit. The deposit required to buy a home will vary from person to person, but there are several grants available for first home buyers that can help you to afford a deposit faster.
It’s important to do your research and talk to a mortgage broker to find out the best option for you.
How we can help
If the pros of buying outweigh the cons for you, our experienced and licensed brokers at Wisebuy Investment Group can help you find the right home loan for your needs. We can also help you with your loan application.
We service a diverse range of clients in Newcastle, Lake Macquarie, Port Stephens, the Hunter Valley and the Central Coast.
Contact us today for an obligation-free chat!