Let's take a trip back in time to when bills helped ducks quack, the tooth fairy provided our main source of income and Santa handled all the Christmas shopping. Life was easy back then. Fast forward to now: bills are delivered monthly, our income comes from hard work and Christmas shopping is all out of our own pocket. Heck, we now even have to pay for the milk and cookies for the merry old man.
Welcome to adulting!
By now, you have made some major purchases in life, but are you ready for the the biggest one... buying your first home? For some, this is an easy and logical step to take. For others, it can be terryfiying - owing all that money, being owned by the bank.
Today, I am going to lay it out for you why buying beats renting any day!
Rent Inspections
RENTING: The dreaded tri-monthly inspection of your home in which you spend 3 days purchasing enough cleaning products to have a small stake in Mr Sheen, only to be told the oven could have been cleaner.
OWNING: The only rent inspection that occurs is when the parents or in-laws come over. Even then, they can nag but they likely won't leave a written report!
Fur Babies
RENTING: Fur babies - you find the perfect house to rent, right price and perfect location only to be told the owner is not going to be comfortable with your 3 dogs, 2 cats, 4 chickens and 1 goldfish. Perhaps the gold fish was the deal breaker.
OWNING: It’s your house, you can even get that goat you have always wanted. The only limit is the council's rulebook.
Renovations
RENTING: After watching one too many Youtube videos, you are inspired to paint a Star Wars themed feature wall. You contact the owner only to find out they don’t like Star Wars. No feature wall. :(
OWNING: It’s all yours... you wish to go Michelangelo Sistine Chapel style and even paint the ceiling, you can!
Money
RENTING: The most important factor of all. Perth's average rental price is $460 per week. Times that by 52 weeks and you’re paying $23,920 per year into someone else's mortgage, effectively buying someone else's house for them.
OWNING: I'm not going to lie... you may be paying the same or, if you purchase big, more per week into a mortgage. The difference, it's your mortgage and it's your asset!
If you weigh things up, owning a house is the best adulting decision you can make. It is a buyer's market right now. With low property prices and competitive interest rates, it could be the time to take that leap.
When you have made up your mind and want to take the plunge into home-owning, it's time to save! Come back next time for advice on how to build those savings.