Mortgage VS Renting in the Australia Market what’s the right choice for you.
Australian Housing Market Renting Vs Buying – Australia is one of the best places to reside in the world. Its real estate industry is one of the most advanced today and it gives a lot of opportunities both for locals and migrants. Real estate can be acquired through mortgage wherein you need to place a reservation or deposit and pay the remaining balance for a certain period of time, with due interest.
However, renting business is also fast-growing business in the country. This is a most common type of residence for migrants and workers in the country. There are also locals who prefer to rent a place, especially when they move a lot. But what is really the right choice when it comes to type of residence. Here are few things you need to consider.
Australian Housing Market Renting Vs Buying – The Benefits of Mortgage
- For long tenure. Mortgage is good if you plan to stay in a particular place for a very long time. Since you will be paying for it for quite a long time, a huge part of your earning will be put in your mortgage.
- It is a good investment. House and lots gain an appraised value each year. If you purchased your house at 1M dollar on current market value, it will double in due time, depending on the market value of the property.
- It’s yours. Once the mortgage is completed, the title of the house and lot will be transferred to your name, making you the legal owner of the property. This gives you the entitlement and fulfillment for something you accomplished.
Australian Housing Market Renting Vs Buying – The Benefits of Renting
- If you move a lot. If you travel or move a lot due to your work, renting is probably the best option for you to settle in.
- It’s less maintenance. Since you are only a tenant in the place you are renting, you don’t have to invest that much in the maintenance of the place. The owner of the building will do it for you.
- It’s less expensive. More often than not, renting is less expensive than monthly mortgages. It is usually paid in monthly basis but of lesser value than that of mortgages.
Australian Housing Market Renting Vs Buying – Weighing your options
It is very important to weigh your options before deciding if you will rent or mortgage a place. The following are among the things you need to consider:
- Your earnings and your job. Your budget is one major thing to consider. Can you sustain the monthly mortgage of a place or is it better to just rent?
- Future opportunities. How do you see yourself several years from now? Are you planning to stay in Australia or are you going abroad to seek better opportunities? If you plan to stay here for good, then mortgage is a better option for you.
- Future plans. If you plan to get married and you need a place to raise your own family, mortgage is a good choice. But if you are single and plan to travel a lot for quite a long time, then renting a choice for you. However, you can always get your place if you feel like getting one for yourself.
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