We’ve all wondered to ourselves at some point “is it better to rent or buy a house?” Especially if you have heard others say that “it’s a bad time to buy” or “renting makes more financial sense right now.” But the truth is, buying property is better than renting. Here are 5 reasons to prove it.
Choosing between renting and buying can often be a tricky situation. Some may tell you that the economy is terrible, so instead, you should rent. On the other hand, you may have heard that it makes more financial sense to own your own home.
The truth is, if you do your research, properly plan your monthly budget and get some expert advice on finding the right property to purchase, then there is never a wrong time to buy a home.
Read this: 10 Tips on What to Look for When Buying a Home
Is it better to rent or buy? 5 pros of buying
1. When you own, you have more freedom and room to make renovations and changes
As an avid renter, how many times have you thought about how you would love to paint the walls a different colour or replace the carpets with wooden floors?
As a tenant, you are not always allowed to make any changes or renovations and if you are, you need permission from your landlord. And even then, every cent you put into your rental home, you have to leave it behind when you move out.
This means that if you planted new plants in the garden or painted the house a different colour, you don’t get those investments back. This is why it’s a much better idea to buy your own home so that you can spend time, money and effort investing into the home in knowing it is yours to keep for years to come.
2. When you own, you are paying off your own bond
When you are paying rent, chances are you are actually paying off someone’s bond. Property experts suggest that if you can find a home with the bond repayments that are similar to what your rent would be (based on what you can afford), then you should consider buying instead of renting. It’s a good idea to make a pros and cons list of what committing to a long-term bond would mean for you.
Some things to take into account:
- Monthly costs such as levies, utilities etc.
- Your plans for the future – do you plan on moving overseas?
- Work out what your budget can afford. Remember, when something goes wrong or something breaks in your home, the cost to fix it will come out of your own pocket if you own a home.
3. When you rent, you don’t have any control over the annual rental increases
Did you know that rent increases annually at a set rate of 10%? This is higher than inflation. Which means that every year, your rental will go up. Property experts suggest that potential homeowners should stop concerning themselves about temporary economic and political issues and keep in mind that property is an investment that will give you good returns.
4. When you rent, you risk your home going on the market
The trouble with renting is that you never know when your landlord might want to sell your home. It can be incredibly stressful when you are expecting your lease to be renewed, and instead, your landlord gives you a month’s notice (in most cases this is 2 months’ notice) that you need to pack up your home, memories and your life and find a new place to live.
Sounds scary, right? What’s more, if you and your landlord get into a disagreement, they may evict you which will also force you to find a new home.
5. When you own, you can settle down
At the end of the day, we all want to settle down into our own home that we know we have worked hard to have. Part of adulting and growing up is putting down roots. Just think, when you own your own home, it is a place you can start a family in and make memories in.
Owning a home comes with a sense of responsibility, but what’s more, is that it comes with a sense of pride, stability and comfort. When you own your own place, you have the freedom to renovate as you see fit, and make alterations as and when you want to. Property ownership is a form of long-term investment and not something to be taken lightly.
Don’t forget to insure your home
Whether you are renting or looking to buy, make sure your home is covered for the unexpected with flexible home insurance. With Oneplan Car and Household Insurance, we let you choose your cover and excess amounts with our easy-to-use cover slider, plus you can change your cover whenever you need to via our Oneplan App!
Have a look at our blog on Choosing the Right Home Insurance for Your Needs: 3 Tips
You can’t predict when things go wrong, but you can plan for when they do.
Your Insurance Family,
Oneplan
