The choice to buy or to rent
January 4, 2012 Leave a comment
Principal of First National Bribie Island Lyn Petrohilos, said current market conditions, coupled with increasing housing affordability, were causing a rental dilemma.
Many renters are questioning if now is the time to stretch their budgets and commit to buying their own home.
“With lowering interest rates and falling house prices, home buying is proving almost too attractive for many renters, but serious consideration needs to be given to the person’s individual and financial situation to ensure they make the right decision,” Ms Petrohilos said.
“It may appear, on the surface that purchasing a home may make more economic sense for those doing it tough, where the monthly mortgage is not too far off what they are currently paying for rent, but a closer look may reveal that incidental costs and a small change in circumstances could lead to an untenable situation.” According to Lyn the advantages of each housing option should be weighed against the drawbacks to find the one that best suits their specific needs and situation.
“Renting offers great flexibility with the option to relocate from home to home and area to area, as the need arises, which is not the case with buying a property,” she said.
“If finances get tight, or the home situation changes… it is far harder to just pick up and go if you own your own home.” While vacancy rates continue to be under pressure, the fact remains renting may still be more affordable, with monthly rental payments usually less than a mortgage repayment for a comparable property and without the other incidental costs.
Caboolture News, 14 December 2011