Key Insights
- Benefits of renting: Live in the hotspots; don’t have to pay for property repairs or maintenance; living with new or old friends.
- Benefits of buying: create the perfect home for you; It’s an investment; comparable to renting.
- It really comes down to what you want and where you’re at in life. But if you feel like the idea of buying is simply out of reach, we want you to know that it’s actually way more affordable than you might think.
Adulting is hard at the best of times – add having to make big decisions about renting or buying and you might just chuck it in the ‘too hard’ basket. Renting can certainly be a convenient and easy option for many stages in your life and has loads of pluses; on the other hand, owning your own home can create a whole new level of comfort and security. It really comes down to where you’re at in life and your goals. Are you enjoying the freedom of zero responsibilities or are you ready to take the financial plunge? Let’s check out the benefits of renting versus the benefits of buying so you can make the best decision for you!
Benefits of renting
Live in the hot🔥spots
Being able to live in a desirable area that you wouldn’t be able to afford to buy is an awesome part of renting. You can live it up in those suburbs with cool restaurants, bars, and entertainment because renting means you get the benefit of the lifestyle without the financial outlay.
No cares 😬 about repairs
One of the best things about renting is that you don’t have to pay for property repairs or maintenance. Got a plumbing issue? That’s the landlord’s responsibility to fix (and hopefully they do 😣😇).
You have spare money 🤑 to save
Another solid benefit to renting is that you have the capacity to save money. Your rent should only chew through 25-30% of your income, leaving you with plenty for other expenses and room for savings. (Note that if you’re unable to save when renting, this could be cause to review your housing sitch and find a better option!)
The more the … cheaper
You can share with housemates, splitting the rent and making it even cheaper individually. This gives you even more spare cash for the fun stuff (or savings!).
Less money upfront
The cost to get into a rental property is clearly much lower than a deposit to buy a home! So low upfront costs can be appealing financially and cause a whole lot less grief.
Freedommm!
Renting offers the freedom of being able to move to new areas regularly, if you wish. This can be ideal for those who love just packing up and travelling on a whim, or others who are moving around with their jobs.
Overall renting can feel like a lot less responsibility. There are no banks breathing down your neck (just maybe a landlord at those pesky rent inspections), no costly property repairs, and plenty of disposable money to live your best life! But if the constant moving or increasing rents start taking their toll, it might be time to look at buying.
Benefits of buying
If you build, you can create the home that’s perfect for you 😍
Building a home gives you so much choice! From location to floor plans, to colour schemes and style, you can truly build the home of your dreams. Your new home will have the latest contemporary design, features and creature comforts, and you can create a floorplan that offers flexibility for the long term. When you consider that Easystart has over 40 home designs to suit a range of budgets, you can imagine how much choice you have if you decide to build!
It’s actually comparable to renting ⚖️
With the Perth rental vacancy rate at less than 1%, there is huge pressure on the housing market – and rents are rising fast. For the first time in decades, the scales have tipped in favour of buying – in fact, it’s currently cheaper to buy than rent across a lot of Perth suburbs, especially when you take advantage of the amazing government grants on offer.
It’s an investment 💰
Instead of paying off someone else’s mortgage, you’re investing in your own future. You can also build equity which creates security for your future. Equity is the amount of your home that you own (i.e., the difference between the current market value of your home and your remaining loan balance). You could make a healthy profit if you choose to sell, or you can tap into your equity to invest in other assets such as an investment property, car, or other personal goals you may have.
Do you know how much money you give to your landlord every year? Try our rent converter and see what you could be investing in yourself!
It’s stable
Instead of being at the mercy of your landlord’s decision to renew or end your lease, you will always have a home that’s yours, as well as more predictable expenses and loan repayments to keep your budget on track. Your own home also offers you a private sanctuary with no property managers or annoying housemates to deal with.
If you feel like the idea of buying is simply out of reach, we want you to know that it’s actually way more affordable than you might think. Get started with finding out just how much you’re eligible to borrow!
So there you have it – renting versus buying! It really comes down to what you want and where you’re at in life. It’s absolutely your decision because #yolo
If you think that building might be on your radar, Easystart offers a range of packages jammed full of awesome inclusions such as LED lights throughout the house, engineered stone bench tops, kitchen upgrades with high end appliances and raised ceilings.
