We all need a place to call home and deciding whether to buy or rent can feel like a complicated choice. The option you choose will likely depend on a range of factors, such as your financial position, goals, and lifestyle.

Home ownership has been part of the Australian dream for decades, but for many buying a home feels a little out of reach. On the other hand, renting involves less up-front costs and affords flexibility, but with no long-term gain.

Let’s compare the benefits of both renting and buying to assist you in making the right choice.

The pros and cons of buying

If you’ve ever decided to purchase a home; you’ll know it can be a little overwhelming at first. Smart buyers will do thorough research, seek out a quality mortgage broker and ensure they’re not committing to any hidden costs.

Buying a home has some clear advantages over renting. Property is a relatively safe place to invest your money — much less volatile than something like shares.

The value of property is essentially guaranteed to increase over time. This means, when you buy a home, you’re setting yourself up for a secure and prosperous future.

The downside is that you will need stable income and enough money for a deposit, which is not always feasible. Fortunately, there are many government grants, subsidies and tax offsets which make buying more affordable.

The pros and cons of renting

If buying isn’t an option right now, renting be the better choice. The biggest advantage of renting is flexibility. Renting means you get to live somewhere you like without being locked in. If your circumstances change or it’s time for something different, you can move out at the end of your lease.

Another advantage of renting is that unexpected costs are unlikely, with maintenance and sometimes even utilities included in the rent.

On the other hand, some would argue that flexibility in renting is actually a myth. While it’s true that renting means you’re able to move when it suits you, it also means landlords can choose to terminate your lease at any time. Provided they give you notice, your landlord is able to evict you in order to sell, renovate or develop the property whenever they like.

There is also the risk that your rent will increase, this is standard practice and usually occurs once every year. You might find yourself suddenly unable to pay the price they’re asking, which could mean moving out.

Buying gives you greater benefits over time

Comparing the two, it seems clear that buying has greater benefits – both now and over time.

It’s no secret that buying your own home will give you a better financial return, and once you’ve saved the deposit and applied for a loan, it is easy to budget for your mortgage payments. The added advantage is that once you’ve bought your house it’s all yours – you won’t have to move out anytime soon.

With so much government assistance currently available, owning your own home is a viable alternative to getting stuck in the unreliable rental market. We like to say it can escalate wealth, you just need to get a foot in the door.

A home built to last

Fairhaven homes are designed with value, honesty, and liveability in mind, so that you can enjoy them for many years to come. If you’re looking for an affordable home that’s built to last, now is the perfect time to get in touch.