It happens to all of us eventually – we go to pay the rent and realise how much money we hand over at rent time. Then we start to wonder if maybe we’d be better off putting that money towards buying a house. It’s never an easy decision, mainly because it’s such a big decision – one that will have an effect on you and your lifestyle for many years ahead. So let’s take a look at both options, and check out the pros and cons of owning and renting.Checkout choosing between renting and homeownership for more info.
Firstly, let’s look at the option and buying your own home. Most people aspire to owning their own home; it’s a dream for most of us. If we’re planning to start a family, the urge to have our own home frequently becomes a lot stronger. We want to put down roots, have a feeling of financial and emotional security, as well as linking into a community for our kids to grow up in. All of these are strong motivations to buy your own home, but there are disadvantages too.
You can do what you want. It gives you a sense of security. Long term it’s a much better investment than renting. You have a lot of freedom. You may qualify for a number of tax incentives. Often it costs the same or only a little more to buy compared to renting. You feel like you’re putting your money to good use. It’s a chance to decorate the house exactly the way you want to. You can build equity, and maybe borrow against that down the track. It helps you to establish a good credit rating for the future.