An article in The Age took a look at the question of whether it is cheaper to rent or buy a property. While it may seem cheaper to rent in the short term, say two-three years, if you take a longer view then the answer becomes clear; buying is the way to go.
According to the author there are four key reasons or costs for why buying is better than renting, they are:
1. Frequent moving costs
Tenants move house more often than a home owner. If you move every couple of years, with each moving costing around $5,000 you can add an additional $50 onto your weekly rental costs.
2. Rising rental expenses
The beauty of being a home owner is having the advantage of fairly stable mortgage repayments, if you have a fixed rate mortgage or a similar set up. Owners don’t have to worry about the landlord increasing their rent every year.
3. Owning a growing asset
You’ll never own your rental property. However, home owners gain an asset that increases in value over time, where a tenant is left with nothing to show for their spent money.
4. Long term – think of your retirement
The last thing you want to be doing in retirement is paying rent. You’d still have a regular expense that you can’t escape, and now have little income to pay for it. This is where ownership can give you security and freedom.
If you are looking to buy a property, and say goodbye to renting, check out the 2 and 3 bedroom townhouses we have available at Paperbark Place in Mooroolbark. You can find out more at www.gehde.com.au/paperbarkplace
You can read the full article here: http://news.domain.com.au/domain/real-estate-news/what-is-renting-really-costing-you-20150330-1m8gr1.html
