Should you rent or buy in today’s market?

Homeownership is the quintessential Australian dream. Although many young Aussies enjoy the flexibility of renting, getting a foot in the housing market can have some big advantages.

Buying gives you freedom

Homeownership means you can truly make a house your home. You usually have the freedom to change your property however you’d like, from painting the walls to knocking out a wall. But keep in mind that if you’re in a townhouse or an apartment, there may be body corporate restrictions to adhere to.

Buying offers stability

If you’re ready to settle in for a few years, homeownership could be the perfect option. You’ll never need to worry about lease renewal or if the owner might unexpectedly sell, because you’re calling the shots.

Buying is a stable investment

History has shown that property prices tend to increase over time, making it a great long-term investment. Many people think of their mortgage repayments as forced savings.

You could even use the equity in your home to fund renovations, a second property or a new car.

The best of both worlds

While it may not be in your budget to buy in your favourite locale, rentvesting is one way to buy in a suburb you can afford and rent in an area you love.

Renting involves less upkeep

As a renter, your landlord is responsible for most upkeep including body corporate fees, repairs and home insurance (but don’t forget this doesn’t cover contents).

This also restricts you from adjusting a property to suit your changing needs however, which is a freedom homeownership offers.

Renting offers flexibility

Many people who choose to rent, do so for the flexibility. Whether a six- or 12-month lease, once your agreement ends, you’re free to go. No selling fees, settlement periods or solicitors needed.

And, that regular rental payment could help you if you do decide to buy. Some free-thinking lenders like Liberty will look favourably at regular rental payments when assessing your ability to service a loan.

Seek expert help

A mortgage broker or Liberty Adviser will also be able to assess your situation to see if you are eligible for any government incentives or schemes to get you into your own property sooner.

If you want to make the move from renting to owning, discuss your situation with a Liberty Adviser today.