Do you rent or own your home? Why does this work best for you?
Yahoo!7 Finance columnist Peter Boehm recently compared the advantages and disadvantages of buying your home - http://au.pfinance.yahoo.com/b/peterboehm/164/is-i... to renting it - http://au.pfinance.yahoo.com/b/peter-boehm/178/adv...
What do you think? Does renting or owning your home work better for you? Why do you prefer it?
- 1 decade agoFavorite Answer
Owning a home is a stabilizing factor in a person's life. It works if you are at that point in your life that you can envision staying in one place for at least a few years. If you're life situation does not enable that stability, owning a home may not be a good choice.
A home can be an investment, but it should be a home first and an investment second. Not the other way around.Source(s): personal experience
- Just ThinkingLv 61 decade ago
In Australia the Gov introduced assistance for first home buyers, as a strategy it is a good one as it provides people with an opportunity that they wouldn't otherwise have, ask yourself why would a government do this if it wasn't a positive thing to do?
The cynics may suggest it is because they are trying to buy votes but the assistance has been around with changes of government. I believe it is because owning your own home provides you with stability, security and a long term investment.
Our first home was nothing exciting but it housed us and our 4 children and gave them stability and security, both important. We have moved and used the equity to secure better homes. Moving by choice not because some landlord wants to sell, refurbish, put the rent up. All things that add stress to a relationship and family.
I agree there are advantages to renting like no rates, no repair bills however you cant make the house your home (unless you have permission from the owner) like painting, picture hooks in walls etc if the rental market is tight as we are seeing here, rents can become higher than mortgage payments. Been there done that.
My advice is to be realistic buy the smaller less loved house in a good location, gradually do it up so that it becomes the prize it should be then use the equity to move up. Unfortunately these days lots of people want to buy top end and do nothing, or worse are getting into debt that is way over their head because along with the house comes the designer furniture big screen TV's etc, buy now pay later has caused a lot of people angst and heartache and is pulling families apart but if you are smart, go back to a more traditional way you can successfully manage and have your own. Your children aren't dragged from pillar to post which can cause major educational issues if you have to move schools as well because you cant rent a house in the same area. Buy the house borrow the furniture if necessary plan for the future and be patient do it slowly. Markets will gain and lose it's part of life sometimes you just have to jump in and do it.
- 1 decade ago
It's said that owning a home is the great Aussie dream, but it is becoming less achievable for some.
Overall, it depends on your circumstances. Residential real investment is a good long-term investment which (in most cases) will increase in value over time. So, if you can afford it and planning to keep the property for several years it is a good option.
However, if you think you are going to be moving around a bit, renting is a better option. There are a lot of additional costs (legal, bank, stamp duty etc.) when you buy and sell a house which will be difficult to recoup if you have only had the property a short time.
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- FREDO FROGLv 61 decade ago
We bought and now own our house , if I sold I too would rent , rates are high ,maintaining a house has some down falls insurance going up
because I AM OLDER can afford to rent for the rest of my life , paying of a house is just a forced saving , if we could save for old age renting would be ok what we give banks is out rages in interest
- ozi_nutLv 51 decade ago
I own my home (mortgage) and live in a rural area. I am paying less on a mortgage and rates and insurance a week then I am for a rental property of the same size in our closest town. I recently thought about moving for job opportunities but the cost of rent is not within my range. I would be paying an extra $46 a week for renting for something that isn't mine, that I may have to move at any given time, and can be sold out from under me.
buying is defiantly worth it.
One things I did do when I got my mortgage is made sure it was affordable to me if I become unemployed and thankfully that was good as 8 months later I lost my job.
- 1 decade ago
Not owning the property has been talked about by a lot of people as a disadvantage of renting. But I think if you haven't saved enough for the deposit don't buy. An illustration, say you want to buy a property that is worth 300,000 and if you are to get a mortgage over 25 years at the current interest rates, it would, initially, cost you around 500 per week as a repayment. Of that 500, 400 is interest and 100 to repay the principal. Effectively you are renting the property for 400 per week, yet it might cost you around 280 weekly to rent and a saving of 120 toward a deposit. I would rather rent until I save enough to match my interest payment to the rent i would pay for that property, at the very least
- 1 decade ago
Currently I rent because we have noticed since the first home owner grant came in, the properties have all gone up in price. I was going to wait until it finished but people are predicting that it will stay high and probably won't go down so now we're trying to look around for something but we've got no rush. I like renting for the ease of it, if something goes wrong then you can get someone into fix it and you don't have to pay for it. However it's frustrating as we have already been kicked out of a place after our lease was up (not our fault, they were living overseas and wanted to come home) so we had to find a new place in a matter of weeks which was annoying and stressful.
- ChandulalLv 51 decade ago
I own our home and not living in a rented house. By owning a house and land surrounding to it, the landed property appreciation is very high as compared to money in Bank. If at any future stage you don't need the house and land, you can sell it at a higher price and shift to a hotel or rented home. But giving a fixed rent every month, it is a big burden and botheration.
- 1 decade ago
I am paying off my home and I find buying better because 1) the place is mine to do what I like and 2) I bought a cheap place where my repayments are slightly lower than what I was paying in rent. I would never have thought as a single person with no savings that I could purchase a property but I found a cheap place, slightly further out of town and thanks to a great mortgage broker, came out of the deal with only $500 to pay - bargain. Its the best thing I've ever done and anyone can do it!
- 1 decade ago
I think owning is better. Currently I'm paying 500 a week in repayments which is more than required. I figure that by renting you are giving someone else money, whereas if you own every dollar you pay goes toward you paying off the house. After say 20 years of paying rent you have given someone else several thousand dollars for what? you have nothing to show at the end of that period. But paying off a house in 20 years you own a large chunk (if not all) of it. You have something to show for the money spent.