It’s been debated for years that with the funds needed to buy a home, renting may be the better option… but is it really?
When you delve into the reality of home ownership and the sometimes uncertainty of renting, the pros and cons on both sides meet to form a compelling argument. Add to this the increased costs of living plus lack of affordable housing, and the care free nature of renting becomes an incredibly attractive option, especially to the younger generations.
The idea of fewer financial commitments, lower living costs, no maintenance or upkeep fees and a more flexible lifestyle make renting the number one choice for those moving out of the family home and embarking on their careers. And it’s not only the young ones who enjoy this flexibility.
Some individuals who have been in the workforce for a much longer period choose to ‘free up’ their cash flow and invest the difference between their weekly rent, and what their mortgage would be, into shares or long term deposits. It also allows them to live in an area they may not ordinarily be able to afford to buy in and offers flexibility for future job transfers.
Then there’s the great Australian Dream of home ownership. Given that you’re in a financial position to do so, buying property can offer great long term benefits, security and peace of mind.
There’s no need to look for a new place to live every time your lease expires, your hard earned money goes towards your own asset and, if the last 20 years is anything to go by, over time the property will appreciate quite significantly. In fact historically, Australian homes have seen an average growth of 9% per annum – perhaps not the case if you bought twelve months ago, but when it comes to property the best method is to always ‘buy & hold’.
Over the years as you pay off your home and head towards retirement, the security of having a freehold roof over your head is second to none.
At the end of the day the choice to rent or buy is both a financial and lifestyle decision, and it was debated fiercely this week on ToopTV’s Showdown 3. With ANZ Financier Tony Romano and the ATO’s Dom Romano in the buying corner and Toop&Toop’s Leanne Kuss and Jenny Drew standing strong for renting, the facts and logic made the final decision an incredibly close one. Log on to http://www.toop.tv/ to see the full debate on Episode 75.
Finally, from the entire team at Toop&Toop, we hope you have a relaxing Easter and ANZAC Day with family and loved ones.Mandy Wurth, General Manager
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