From reduced control over the choice of the colour of paint and fixtures to strict pet guidelines and rent increases, renting a home comes with a number of issues. However, renting also does come with some essential advantages even with the above-mentioned drawbacks.
According to the Australian Bureau of Statistics (ABS) data from the SIH show that in 2015–16, 67.5% of Australian households owned their own home (37.1% with a mortgage, and 30.4% without a mortgage). A further 30.3% were renting, either privately (25.3%) or through social housing programs (3.5%). The proportion of total renters also includes ‘other landlord types’
Here are seven good reasons, from amazing cost savings to improved flexibility, demonstrating why renting is the better option.
1. No More Costly Home Improvements
Even though it’s unlikely for you to recover the money you spend on home improvement projects, they are a constant temptation. The savings you make by not being able to conduct remodelling projects, even when you really want to, can be used to purchase a piece of furniture you can carry when you move, to cover travel expenses or boost your retirement fund.
2. Freedom From a Mortgage
For most people, owning your own home means signing up for a huge amount of debt, even though it can be done outright. You still have to deal with a number of additional expenses, such as property taxes, agent fees, closing costs and interest payments, even though a home is considered to be a great investment that can help you save more in the long term. You get the opportunity to save more, if not as much, as a homeowner by being a smart renter.
3. Living in Convenient Locations
You might be able to rent a home in a highly congested location in the city, where home prices may be out of your budget. The vibrant urban culture and amenities available at these locations might be within your reach all thanks to renting.
4. The Chance to Grow With Your Family
Even though it might seem like a good idea for you to buy a tiny first home, you might find that you need more space once you have a child or two further down the line. If you choose to rent, moving to a larger space is much easier.
If you decide to move from your current home to a new one, and you end up servicing two mortgages at the same time, as you try to sell your old home, things can get a bit tricky.
5. Avoid Time Consuming Home DIY Projects
From painting and staining the deck to mowing the lawn and cleaning the gutters, owning your own home involves a lot of time-consuming maintenance work. You get to free up more time to do the things you enjoy by choosing to rent instead.
6. Repairs Are No Longer Your Responsibility
One of the most significant benefits of renting a house is being able to call your landlord whenever repairs are needed. You no longer need to shoulder the cost of unexpected repairs, such as broken appliances or leaks in the plumbing.
Experts at Budget Direct say that “Ongoing costs like maintenance and repairs can also become a financial burden for those who are already struggling to afford mortgage repayments. These are covered by the landlord when you’re renting, but as an owner-occupier, you’re required to front up to the money for all of these unexpected charges.
7. Avoid Being Tied Down
Have you received a job offer far away from where you currently live? Renting makes the move much easier, as you would have to sell or rent out your current home if you owned it instead. You can also sample life in different locations as you search for your best fit by renting in different areas.