by Jeff
29. August 2011
People who've been in the renting scene for quite sometime now have probably wondered of a better way to stay and have their own place. Especially with the renting scene in Australia that a lot of people want to get out into the market and have a home of their own. The main problem is financial capacity and the actual housing crisis that's very evident in the choice of properties available. But home is not yet lost as there are still a handful of options available to people who are weighing the advantages of Owning a property vs Renting.
First there’s the popular rent to own or rent to buy option. The program allows first time home buyers, or renters that want freedom from the renting scene and offers the option of renting and buying at the same time. In a nut shell, you start off by renting on a property of your preference and tied up on a contract that allows you to put a certain percentage of your rent money toward purchasing the actual price of the dwelling. This buys you off some time to not only invest in the property but to build a good renting history and acquire a mortgage loan to buy off the property.
Depending on your budget and financial capacity you may opt for a big spacious property or settle with a small yet elegant dwelling all within your budget’s limits. If you prefer to move in earlier without putting down a lot of money or maybe save for later within the renting period, you may ask about vendor financing that makes things easier by making the seller your personal bank and buy the property in your part. Vendor financing usually goes hand in hand with rent to buy as the concept is very similar. The seller may choose to finance a part or all of the property’s cost and in turn act as your landlord while you’re saving up to purchase the property.
Advantages of owning your own place include being able to renovate at your phase and time. No need to ask permission, enjoy the freedom of painting your wall with your color of preference, replace your indoor lighting with a fancy chandelier or even add an extension to your garage for your workshop. Having your own property gives you unsurpassed flexibility and freedom not to mention no landlords to bug you for your rent. Of course nothing would beat the peace of mind that you invested your money on something that would give you and your family long term stability. No need to think about being evicted.
With renting, it’s more of a short term fix for people who need a place to stay in after starting fresh or maybe after having gone through a foreclosure. With renting you put your money through empty investment. You won’t be able to get anything in return because the property is not yours. You won’t be able to do renovations either because your Landlord would not permit it. This and other things is reason enough to consider the odds of Owning your own property vs Renting and maybe consider a longer term goal.