Conventional wisdom tells you that owning a Brisbane, Gold Coast, or Townsville property can be more expensive more than renting one. In addition to mortgage-related expenses, maintenance costs also hurt the pocket of homeowners regularly.
Tenants have nothing to worry about other than the monthly rent. Landlords are responsible for the repairs and obligated to keep property rentals habitable at all times.
Furthermore, you are not tied to the house, and you can relocate anywhere you want at the end of your lease. Tenants enjoy a sense of freedom many homeowners miss and envy.
Despite the clear advantages of being a tenant, you should consider ending your renting days for several reasons. Below are some of them.
Rent Increases Are a Fact of Life
Yes, rents are generally less costly than mortgage payments, but they do rise over time. Landlords are legally allowed to impose rent hikes over a specified period.
An obvious solution to this is switching to a new place. If you live in a real estate hotspot, though, where the property rental vacancies are low, you might have little negotiating power to lower your rent. In the end, you could be at the mercy of a landlord who is out there to make as much money as possible.
Moving Costs Add Up
Being a tenant means you do not have to commit anywhere. You are free to go after the lease agreement is over, and experience life in a different neighborhood or community. Although this option is desirable if you are not fond of staying put, moving periodically can waste a lot of time, money, and energy.
Hiring reliable removalists can be a costly proposition, but shunning these professionals can be a dangerous endeavor. The overall costs of moving might only offset your savings from not buying a house.
Security Expires and Can Be Denied
Yes, your lease states that you have the right to occupy a rental property over a specified period. However, it can’t always protect you from eviction, especially when you get on your landlord’s bad side.
Lease contracts spell out grounds for eviction, and disreputable landlords sadly abuse them. Many tenants that try to go head to head with their landlords over maintenance duties often lose the battle. If you find yourself in this dire position, the government might be able to interfere to help if you file a complaint, but you might lose the roof above your head in the meantime.
A homeowner does not have to worry about such a thing. It is true that the financial institution truly owns the property until the mortgage is paid in full, but the threat of foreclosure is never an issue as long as the bill is settled on time.
Renting Makes Your Landlord Rich
Renting can save you money monthly, but your landlord’s bank account gets greener every time you pay your rent. The property itself can have a mortgage, and equity is built on it when the principal is reduced. If the land appreciates, its owner (the landlord) reaps all of the benefits. If you are tired of paying for your landlord’s mortgage, strongly consider saving up to be a homeowner yourself in the future.
Being a model renter can help you qualify for a home loan more quickly. Consult a mortgage broker to learn how you can use your rental history as a form of genuine savings.