It’s an age old debate, should you buy a home or continue renting? The idea of buying a home and making mortgage repayments can seem daunting and whilst there’s pros and cons to both options, you’ll often find you’re better off in the long term (and right now) when you’re paying off your own home loan.
Is buying better than renting?
Whilst renting can be a great option for those who like to move regularly, or who prefer not to be responsible for property maintenance, owning a home has many upsides. Homeowners will find that they have much more security and independence – no more rent inspections and no chance that you’ll have to move when your rental period ends. Tenants are at the mercy of their landlords, whilst homeowners will find they have much more stability and freedom. You’ll be able to renovate and make changes to your home as you see fit and over time you’ll gain equity in your home.
Is rent dead money?
When you rent you’re essentially helping to pay off someone else’s mortgage. Usually, if you can afford to rent then you’ll likely also find that you can afford to buy. The monthly cost of your home loan may even be less than what you’re paying in rent, depending on the market in your area. All the money you put towards your rent could instead be put towards instead paying off something that is YOURS. At the end of your mortgage you’ll have a valuable asset that belongs to you, rather than your landlord.
Ready to see if owning your own home is achievable? Try our rent vs. buy calculator and find out how much you could be spending on your own home instead.
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