To Rent or Buy?
In an interview this morning on the Today show Karl Stefanovic asked the question about renting v’s owning. He had property expert Peter Koulizos in the studio to answer the question and raise some pro’s and con’s for each.
As was pointed out by Peter, it’s far cheaper to rent than it is to own your own home. This is the case for about 15 yrs when eventually the costs of both options breaks even. He also said that there was a huge advantage in renting in that you can afford to live in areas that you may not be able to buy a home in, due to purchase costs. The discussion also went on to highlight a big negative with renting and that was once you go over the 15 yr mark you’re better owning a home as rents keep going up, whilst in that time your mortgage would have gone down. These are all very good points but I’d like to throw an extra positive in there about renting that will remove the negative point about not having a property in the market.
Why not rent, and save cash flow, and use some of that to buy an investment. This way if rents keep climbing then so will the rent you get for your home which will balance things out. It also means that in 15 yrs when the balance is getting close to even, you can stop renting and move into the home you’ve owned for the past 15 yrs. Doesn’t this give you the best of both options? Don’t limit yourself to just renting or owning, why not rent and invest? Our clients do!
If this is a strategy that may work for you give us a call and we can discuss your individual situation. (07) 5530 8407.