Rent or Buy

Rent or Buy

There are different views expressed about owing/renting a home/abode. Let's look at some of the talk:

For renting:

1. There are no worries about rates, insurance and maintenance as the landlord takes care of that.

2. It is easy to pack up and go elsewhere. 

3. Moving to another place every six to twelve months can become a painful chore.

4. There are rules that prevent being able to please yourself especially personal preferences.

5. Each time the lease expires there may be a choice of extending the lease/choice of moving location.

6. The expense of moving the household items like refrigerator, washing machine, lounge, can be costly.

7. Disconnection/connection of power and gas.

8. Changing postsal address for mailing purposes.

9. Advising the Electrol Commission of the new Electrol Division for voting purposes.

To buy:

1. The mortgage will be constant until sold or adjusted as interest rates rise; or refinance.

2. The choice of purchase will be more attractive, as there is a wider choice of purcchase, eg house and land, unit, town house, duplex.

3. The mortgage repayments will increase your equity, and that figure will depend on how long the purchase is kept and what the state of the market is when sold.

4. Any improvements to the property will increase the value, i.e carport, 2nd toilet, ensuite, etc.

5. It is my opinion that the land is the most valuable thing, and if in a few years, it is decided to sell the property, particularly in an "up market" the choices are many.  Always try to hang on for a profit.

6. If life is throwing a few negative things in the way it is always possible to become a landlord and rent the property until there is an economic turnaround or indecision has passed..

Finally, every market has its highs and lows, troughs and swings, always making it advisable to look into those trends before selling/buying.

Keep those savings plans going until your goal is reached!  Chapter 6 gives some solid tips.