I guess for us the main thing is security, it's our home & will always be.
We didn't buy brand new but have loved making this home ours. In a rental you can't *do* anything to the house.
For us I felt I prefer that $500 to go towards something that we will outright own one day rather than paying it towards someone elses mortgage.
Plus I just feel better having my own place that feels mine, renting I could never make it feel mine, you couldn't change things, you can't do what you want to the place and the owners can just turn around one day and ask you to vacate. I like having MY place.
$500 in rent would get you a better house or better location than $500 on a mortgage, however it isn't going towards owning bricks and mortar, it pays for a nice roof over your head.
I reality, getting a mortgage means renting off the bank in a way, but at least you have the title deeds and can make improvement, hang up pictures and pretty much do what you want. You have to pay the maintenance and rates etc, but no-one else can tell you what colour the walls have to be or ask you to leave.
There's pros and cons to both renting and buying. Some people choose to rent a nice place/location to live in and buy an investment property they can afford. It depends on lots of things, like life goals, where you prefer to live, what kind of lifestule you want.
I could definitly rent a nicer place than I have bought (though my house is nice : ) - but I like the security of having my own place - so for me its worth it. I look forward to having it paid off and not have to worry about paying rent when I have retired!
I think owning is better than renting because of the long term investment and putting that money in to your investment and not someone elses, but sometimes it comes down to what you can get for your money and if you can afford the rates and maintenance on top of the repayments.
depends.
$500 a week rent is just that - money in someone elses pocket. But you don't have to fork out extra for water rates (yes sometimes you pay excess but not the actual water rates), council rates, building insurance, maintenance (ie if something breaks you ring the RE and the bill goes to the owner).
$500 on a mortgage is investment in your pocket, but it doesn't cover all of the above, it's extra.
We rent and own a home. They are in different states so I don't have a great comparison, but for what rent is worth here I couldn't get what my mortgage affords me.
I would love to buy but we are now on one income and dont have enough deposit that the banks are wanting now. We live in a nice area to buy here we are looking at least $450k thats alot of cash hey. We are not eligible for any grants and its tough to scrap a deposit together maybe one day when banks are willing to allow you to borrow at leat 99% then maybe we will have a chance. I know what people say that renting is dead money but in one way we dont have the real worry of prices going up each month because the economy is getting better. Dont get me wrong buying is what I want but what we live in now to what we could afford to buy are worlds apart.
People out there are giving first home buyers every chance to get into the market but there is a hidden market out there with people in second marriages etc where their partner has never owned a house before and cant get these concessions because thei partner has owned a house before. If we could get some of these concessions to top up our deposit that have already I would buy in an instant
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Buying Vs Renting?
) - but I like the security of having my own place - so for me its worth it. I look forward to having it paid off and not have to worry about paying rent when I have retired!
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