Which is better: renting or owning?
There are advantages and disadvantages to both owning and renting. But ultimately, the decision will come down to your individual circumstances.
Here are some things to consider:
Rent |
Own |
If the value of the property rises, you may have to pay more in rent |
If the value of the property rises, you’re likely to make a profit if you sell it |
Building maintenance is your landlord’s responsibility |
You need to budget for building maintenance |
Your rent is fixed for a relatively long period of time |
Your repayments may fluctuate with interest rate changes |
You’re paying off someone else’s mortgage |
Your property is likely to be an appreciating asset—and could become an investment property in the future |
Your monthly rent payment may be less than mortgage repayments, especially if you’re sharing |
Your mortgage repayments may be more than your rent—but you can also view this as a form of saving |
You don’t have any control beyond the term of your rental agreement |
The property is yours to live in as long as you want to |
You’re limited in the changes you can make to the property |
Generally you can do anything you like with the décor and outdoor areas |
Generally you’re not locked into a long-term commitment, and can move out at short notice |
It takes longer to sell a property, so you have less freedom to move |
Someone else owns the property |
It’s a place of your own |
Purchasing your first home is one of the most exciting things most people do. It's also a complex process, especially for first-timers. But the result is invariably worth it, and if the value of your property rises, you'll have a valuable appreciating asset on your hands.
