As more young Australians fly the coop and leave their familiar nest, they’re posed with the question, is buying a home better than renting? With growing concerns over house affordability, the simple answer might be to just start renting, but what if buying a home is just as easy?
Before we answer that question, let’s talk about the benefits of buying a home vs. renting.
Top 3 Benefits of Buying a Home
1. Living Security
When you rent, your housing stability is heavily reliant on the decisions your landlord makes, meaning that they can decide overnight that they no longer want to rent their property out. Not only does this leave you with the expenses of moving out, it can come at an extremely inconvenient time and can be quite emotional, especially if the news comes unexpectedly. Owning your home means that you get to be in charge, and you can sleep peacefully knowing that you don’t have to move unless you want to!
2. You’ll Build Your Equity
Equity is the difference between the amount that is owed on your mortgage and what your home is currently worth. So for example, if you owe $150,000 on your mortgage loan and your home is worth $200,000, you have $50,000 of equity in your home. Building your equity is important as it becomes beneficial if you want to sell your home to make a profit, but that’s not the only reason. Having equity can unlock other opportunities such as taking out a second loan and using it to renovate your current house or to even buy a second home to rent out to others. This is a great way to build your wealth and grow your equity even further!
3. Have Your Dream Home
With your own home, you get to make it yours! You’ll be able to hang up mirrors, family pictures and artwork that reflect your family and truly make the space your own. Renovations are also yours to do if you choose, knowing that every dollar you spend renovating your home will be made back upon selling it, meaning that not only will your home look great, it’ll also increase in value!
Top 3 Benefits of Renting a Home
1. More Flexibility
If you’re the nomad-type and enjoy living freely, not restricted to any one suburb, renting might be the better option for you! If you don’t need to consider schools, being close to family or work, having a more flexible living situation will allow you to move wherever your heart desires once the lease is up. This also means that you can choose to either downsize or upgrade depending on your income or lifestyle choices.
2. Zero Maintenance or Repair Bills
One of the biggest benefits of renting a home means that you no longer have to pay for maintenance costs or repair bills, both of which could become quite expensive over time. So if there are plumbing issues or an appliance breaks down, your landlord will have to fix the problem or replace it.
3. No Down Payment
Renting a house means you don’t need to come up with the initial down payment, meaning that you can move into your own space quicker. However, please note that a bond of approximately four weeks rent will tend to be required. This bond should be refunded to you at the end of your lease, provided you haven’t caused any damage to the property. In Queensland, under the First Home Loan Deposit scheme, you could only be required to come up with as little as a 5% deposit in order to take out a mortgage.
There are definitely benefits to both options and you will need to consider your lifestyle and budget before making a decision. At Domaine Homes, we believe that building a new home is one of the biggest decisions you can make in your lifetime, so we pride ourselves in creating a building experience that’s simple, enjoyable and best of all, affordable! And with the Federal Budget introducing and reinstating great incentives for first home buyers, there’s never been a better time to build!
Our home designs, like the four bedroom, two bathroom Tahoe 19 start from as little as $133,800* with discount and grant applied. Check out our latest promotions and find out what’s on offer at Domaine Homes, and move into your very own dream home!