Is owning your own home still better than renting?
The number of Australians owning their own home (both with and without a mortgage) has declined slightly over the past five years, the most recent Census data shows. At the same time, the number of us renting has increased slightly. Currently, 30.9 per cent of Australians are renting, up from 29.6 per cent in 2011.
It’s easy to look at these figures and property values around the country (especially in places like Sydney where the median value is well over $1 million), and consider renting a more economical option. But there are so many benefits to owning your own home that renting cannot provide. Here’s why you should consider putting your hard-earned savings towards a deposit instead.
1. You have more flexibility to do what you want
Want to redo your kitchen floors? Renovate the bathroom? Convert the garage into a granny flat? If you’re renting, these things are either not possible – or require negotiating with your landlord to get their approval. All the decisions are in their hands, not yours.
When you own your own home, you call the shots – plus any home improvements you make will be increasing your equity.
2. Your money is going towards an asset
When you rent, your money is going to your landlord. When you make mortgage repayments on a principal-and-interest loan, you’re paying off some of the value of your home – not someone else’s mortgage!
You’re putting your money towards what is perhaps your biggest asset – your home. And, again, with every repayment you make, the more equity you’ll have, which you can use to fund renovations, buy a new car or go on that overseas trip.
3. You have something that’s yours
The first two benefits are practical, but this last one is an emotional benefit. When you own your own home, you have a place to call your own. It’s a place where you cook, eat, drink, entertain, love, laugh and raise a family over the long-term. You’ll form a bigger attachment to a place that you’ve bought, as opposed to one that you could potentially need to move out of at any time.
This kind of security is important if you want to create stability for yourself and your children.
Are you ready to stop paying off your landlord’s mortgage and get started on the road to home ownership? Get in touch with your Mortgage Choice broker today.
