Renting versus Buying
What puts you on Top

Many Gen Y’s are worried that they may never be able to get into the property market altogether, due to the rising concerns over affordability.

Some experts claim that the Australian housing market, is too expensive, so it makes more sense to rent.

Who is Right?

There are Pros and Cons either way and it is really up to the individual to decide which option suits them better.

Renting Pro’s:

· Flexibility

· Rent can be cheaper than Mortgage Repayments in expensive Inner City suburbs

· Avoid costly maintenance, repairs, Rates & Insurances.

Renting Con’s

· Uncertainty/no stability, no say in how long you can Rent for

· The home is never yours

· Property Manager and Landlord can come in at any time after giving due notice

· You cannot make any changes to the property without permission

· Rent prices also increase

· You never stop paying Rent, whereas Mortgages are paid off in 25-30 years

Becoming a Renting Investor.

There is a growing trend for young buyers to keep renting and buy and Investment Property before buying their own home.

Some of the reasons this is happening is:

· Home ownership in the desirable suburbs is too expensive so they rent (Inner City, Café Culture etc)

· Some live at home rent free with parents and save money for an Investment Property to get their foot in the Housing Market door later

· Their lifestyles are still in flux, planning to travel, haven’t set down their roots yet etc

· A burdensome non tax deductible mortgage is not that attractive to them

But is Rent Money Dead Money?

Not always, there are arguments for continuing to rent and buying an Investment Property first.

Owning an Investment Property, means that expenses like Rates, Insurance, Maintenance and the Mortgage are Tax deductible.

Plus, a further, tax deduction for depreciation of the property and the internal fittings and fixtures.

They can further save money by using a property management system like RealRenta.com.au, which does everything a professional property manager does but without the price tag.

RealRenta it’s just a better way to manage your rental property.

Jason Gwerder
Friday, 8 April 2016

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