Are you currently paying more to rent a house than your bond would be in your purchased a house or flat? Maybe it is time to consider buying a house, or atleast working towards it.
Interest rates are currently at a record low which has lead to a number of people being able to step onto the property ladder.
If you are looking to buy a house, make sure you work with a reputable conveyancer and have been researching the market for three to six months. It is also important to make sure you are saving for those unexpected costs such as transfer duties (depending on the price of your home).
Here are some of the pros and cons of renting a house versus buying house:
PROS OF RENTING
- Maintenance and unexpected expenses are not a cost you need to worry about, it is up to your landlord to fix any issues that arise.
- Freedom to move or relocate whenever your lease expires
- Deposits are more affordable
CONS OF RENTING
- Rent is an expense, and you are not earning any returns but rather helping someone to pay off their bond or earn extra income.
- Your rent can be increased at any time
- You can’t make any changes to the property without approval and a large significant cost to restore changes should you move out.
PROS OF BUYING
- You own an asset which could earn you a return down the line
- You could earn potential rental income down the line
- You can renovate and decorate to your hearts desire.
- Gives you a send of stability
CONS OF BUYING
- Costs for any home maintenance (which are usually a surprise) can really impact your savings
- You need to make a longer commitment, its harder to just move.
- If you are in a sectional title, you could get a special levy applied or have an increase in your levy amount applied.
With all of those points to consider, buying a house is not something that should be done on a whim.
When you decided to start looking for a house to buy, make sure that you get pre-approval so you know what price range you can look at when searching. It is also important to start saving for a deposit.
If you are thinking of buying or selling a house, chat to the team at Executor law about our conveyancing services.