Why Buying Property Is Better than Renting

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It’s easy to dismiss buying a house as an expensive exercise, but the truth is that buying a house is one of the most financially savvy decisions you can make. Let’s take a look at why…

Buying a House Is an Investment

No matter what the argument for renting is, buying a house is one of the safest ways to invest your money. You may see renting property as a sure-fire way to avoid paying for the maintenance of the property, rates and taxes, as well as homeowners insurance. However, in all honesty, those costs are all bundled up and accounted for as part of your monthly rental fee to ensure the home owner’s costs are all covered.

Unless there is a big recession or big hikes in interest rates, the value of your home will appreciate over time. This means that should you decide to sell your house, you are more likely to make a profit. Even if worst comes to worst, you will still have some level of return of investment on a property that you own. You will never have any sort of returns if you are renting property.

Buying a house versus renting a house
Even When times Are Tough

With rising fuel, food and general living costs, it’s hard enough to manage rent on the average month for most people, so saving for a deposit often appears impossible. That said; it might be possible to get a 100% bond. It’s not often a bank will give a full bond, but it’s worth a try.

Another thing to consider is that once you have that house and bond, if you have been paying into it for a few years, there is the option of refinancing your home. If you are struggling to make your payments due to changes in your circumstances, or if you want to borrow money against your loan the bank might be able to accommodate you.

Banks are often willing to negotiate their terms if you have built up a good credit record and proven yourself to be a reliable customer.

Looking Ahead

Whether you are an eternal singleton at heart, a growing family or an established couple, buying a house offers long term security and the potential to grow your personal wealth.

Don’t just take our advice; speak to your bank along with every other bank you can think of. It sounds like a lot of work, but ultimately good advice is invaluable. The right bank won’t just tell you what you want to hear, they will give you a good rate on your home loan and advise you regarding your budget and saving for a deposit before you take the leap.

Buying a house is a big deal, but there is no better time to invest than now. Even if you prefer to invest in stocks, you still need to put a roof over your head, so you might as well own it.

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