Many first home buyers have one major decision to make before taking the first step toward a home loan: Whether to buy or rent.
Renting instead of buying a property obviously comes with its own unique advantages, such as less money needing to be saved for a deposit and having a landlord available to take care of issues around the home.
However, as many people have found, purchasing a property comes with many benefits of its own.
Equity, freedom and security
One of the primary benefits of buying is making an investment. A house can become a major financial asset as you pay off your mortgage.
Once you own it completely, it acts as a financial investment that can be used as collateral, or as a money-making tool if you decide to sell it or rent it out.
The more you pay off your home loan, the more equity you build in your property. Unfortunately, this is a benefit renters will never have.
No matter how long a person pays rent on a property, it never gets any closer to actually becoming their own.
Another great advantage of buying a home is the freedom that comes with it.
When you rent, you are beholden to a landlord. This means that any changes you might want to make to your home, such as painting a room or doing some landscaping, must be approved by the owner first.
When you own a home, your decisions are your own. Whatever renovations you feel like making are up to you in accordance with council regulations.
Additionally, while renting is generally seen as a more affordable option, buyers know that by locking in their loan rates, they are guaranteed to only pay a certain amount.
On the other hand, renters are beholden to the market, and this can result in rent increases, making the purchase of a home a more financially secure move in many instances.