Rent Vs Buy – Which Is Better?

Rent Vs Buy is often a hot topic. Rent money is dead money is the argument for buying. However it can be twice as expensive and therefore renting is often far less stressful on the finances. Rent Vs Buy is a topic that comes down to the individual’s circumstances and what their goals are and how likely they are to be living in the same house in 5 years time.

Rent Vs Buy – A Comparison

Buying Your Home

Advantage

Sense of satisfaction and security in owning a home. It is an asset that almost always increases in value over time. Once the home is paid off you have very little living expenses to worry about

Disadvantage

It can be very expensive and put stress on your finances having to meet mortgage repayments month to month. A change in circumstance or interest rate rise can tip you over the edge if not planned for

Renting

Advantage

In the current market it is much cheaper for cashflow purposes, renting gives more certainty to what your expenses will be as it is the landlord who wears most of the costs not you

Disadvantage

When your lease expires you may be forced to move out and you are limited to improving a home. You also miss out on capital growth of real estate if you are not in the market

Consider the best of both worlds! With renting out your home you will be entitled to tax benefits and therefore it is often a cheaper option than using your home as a principle place of residence