Thinking of Leaving Tenancy Behind - Consider These Points
One of the age-old conflicts when it comes to the property market is deciding whether renting or buying a house is the right option.
It could be that you're a long time renter thinking it's time to take the next step, or perhaps you're a new tenant . Whatever your background, you're likely to face this same forked road at some point.
Before you choose to pay for a home loan deposit or decide that it's a rental property that you're really after, have a think about some of these points.
The Pros
With a student loan to pay off, not to mention credit card bills and who knows what else down the track, now's the last time you need to be saddled with more debt. And a mortgage is one of the biggest debts you'll ever have!
Better yet, with a rental property, you're not tied to any one place. You're free to move around and go anywhere at what is effectively the drop of a hat, pending your rental agreement. With a house you own, if a new career or lifestyle opportunity opens up, you can't just pack up and go.
Not only that, but because you're not doing any maintenance or repairs or dealing with rates and insurance you'll save on both money and the stress that such obligations can lead to.
The Cons
While you might be saving money in the short term, in the long term the money you've paid to effectively help your landlord get ahead could have been used for a home loan deposit, or your own mortgage.
Furthermore, because it's not your home, you aren't able to make any major improvements or renovations to the property without your landlord's permission. Even when you do, you're not the one who will be reaping most of the benefits from your time, effort and money.
Finally, a point as crucial as it is obvious: It's not your home. You aren't sharing any profit the house may make and when your lease runs out, your landlord can simply ask you to leave. Whether it's because the market's had a convenient upturn or it's because he or she would like to move into the property for his or herself, it's the landlord's property and they can choose to do what they wish with it - within the law of course.
Give these points a think when trying to decide that whether or not you want to stay a tenant, or move up the property ladder.
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