House affordability has been a huge issue in Australia in the past few years. Deciding whether to jump on the homeownership ladder or to continue renting is a big dilemma. Renting v buying a home has been one of the most discussed questions in the real estate industry with the benefits and setbacks of each option thrown around, back and forth. There are some obvious advantages and disadvantages to renting a home in Noosa Waters and owning it. And it’s important that you are aware of the pros and cons so that you are properly guided when you have to make the decision as it is the biggest financial decision that you are ever going to take.
The importance of this decision can weigh heavily on some people so it’s important to ignore what’s expected of you and choose what’s right for you. While one option is admired for its flexibility but criticized due to the ‘rent is dead money’ stigma, the other option is appealing due to the security it provides but criticized due to the additional interest rates.
So which option – renting or homeownership – is better for you? We have gathered a few pros and cons of renting a home in Noosa Waters and buying it. Read carefully and make your decision.
Renting a house in Noosa Waters
There are many reasons people choose to rent a house in Noosa Water rather than buying it and it’s not just because of the money – it’s also about freedom. Renting gives you flexibility. As a tenant, you can move from home to home and from area to area once your lease expires. The huge costs associated with buying a home means you have less flexibility.
– Less stressful
Renting a house in Noosa Waters is much less stressful than buying one, financially. When you choose to rent a home rather than buying it, you don’t spend your savings on a deposit and all the costs associated with buying a home. You’re freeing up money to spend or invest elsewhere.
– Fixed expenses
As a tenant, you don’t have to worry about unexpected costs as maintenance is the responsibility of your landlord. In addition to this, homeowners have to pay higher repayments when there’s a rise in mortgage rates, whereas your rent is fixed as a tenant so you can plan your expenses better.
– Increment in rent
The property market is changing regularly and landlords are within their rights to increase the rent once the lease ends. The cost of renting will steadily increase over the years due to inflation and the rise in property prices. This might force some tenants to move out of the place due to financial stress.
Rent never stops whereas homeowners can pay off their mortgage after a certain period of time. Most people pay off their mortgage in less than 30 years but if you choose a life of tenancy, you’ll always have to make rental payments.
Buying a home in Noosa Waters
Stability is one of the biggest pros of buying a house. The house is your own, and based on the loan agreement on your house, you know exactly how much and for how long you are going to be paying for the house.
A house is an asset whose value is going to increase over time. Homeownership is a long term investment and there will be periods of a strong rise in the price as well as weak growth. Having an asset can turn fruitful in the future.
Home equity is the proportion of the house that you own and can be used to fund an investment in shares or a managed fund, provided.
If you decide to buy a house, be prepared to pay the interest and fees of the loan for a long time. Sometimes it takes people decades to pay off home mortgages especially if the interest rates fluctuate over a period of time.
– More expenses
Homeownership is not just about paying the deposit and loan repayments as when you purchase a house, about 6% of the cost is spent on stamp duty, government fees, conveyancing costs, loan establishment fees, etc. Homeownership can turn out more expensive than you think.
If you are looking to rent a home in Noosa Waters, your search ends with Robert James Realty. One of Noosa Waters’ top real estate agents, Robert James Realty provides effective services and real estate guidance to get you the best real estate deals efficiently.
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