One of the most common decisions we face today, especially for young adults and couples, is whether to rent or buy a home. The simple fact, though, is that both options have their own advantages, each better suited to certain situations and needs. So let’s look at the advantages of both buying and renting, and hopefully help you make the right choice for you.
Buying: The advantages
Long term Investment:
The greatest advantage of buying over renting is that it really is a long term investment. Unlike most things you buy, a house will grow in value over time. This means that even if you will need to move away some day and need to sell your house, you should get more for it than what you paid.
Buy to rent (passive income):
When you buy to rent, this means that you are buying the property specifically to rent it out. This is especially useful if you have reliable accommodation and want to generate a passive income which can bolster your finances and even help to pay off your home loan. What makes this very attractive is that you can essentially have somebody else paying for your new property, and you reap the rewards from owning this valuable asset.
Improved credit score:
By regularly making the necessary repayments on your new home, you show that you are a lower risk when applying for credit and can be relied on to make repayments. On top of having a large investment to back yourself, you will also have an improved credit score.
Renting: The advantages
The short term nature of renting is ideal if you are faced with frequent relocations or are awaiting a job relocation. You do not own the property, and you won’t have to worry about who will handle the lease or finding buyers before you move. You simply cancel your rental contract (within the required timelines) and find a new home to rent.
In most cases, the homeowner will have insurance on the property itself and handle maintenance work on their account. This means that you only need to insure the contents of your home.
Combined with the reduced cost of renting as opposed to repaying a home loan, you can use these savings to invest your money or save up for buying a home further down the line.
At JNK Properties we recommend investing in your long term future, which is why we specialise in building quality new homes. Contact us to find out more about the benefits of a new house, and get your ideal home built.