Renting vs Buying

There is so much discussion these days around whether or not it’s better to rent than buy.  My experience as a Mortgage Broker obviously says buy, however here are the reasons that I believe this to be the best strategy;

1. You are buying an Asset.   Although it may not be for years, the cost of your home will increase.  You are also able to make improvements to your property through renovations which can accelerate capital growth.  Other options to create wealth these days are usually investing in the share market which can be very volatile and scary for many people whereas everyone needs a roof over their heads so property becomes a very tangible commodity.

2. Interest Rates are at an all time low so there is no better time to buy.  Predictions are that rates will remain low for some time and there may even possibly be another rate cut before the end of the year.  This means that although you are paying interest off your loan, it is a lot less than in previous years and may also mean you have the added benefit of paying off your debt faster.  Why not take advantage of this situation!

3. Security;  It’s your home!  No one can ask you to leave, or come in and conduct inspections.  You also don’t have to worry about moving out when the lease is up or if the landlord suddenly decides to sell the property. The best news is you can even paint your walls or hang pictures if you like!  If you buy, it’s yours (well the bank and yours!)  It is also an emotional investment as many people build their family dreams around purchasing a new home, especially their first home. It’s such a rewarding experience for people.

So give me a call on  to discuss purchasing a home or any financial goals that you may have.  I am here to guide and assist you in any way I can.

Josh Gilbert

Your Loan Market Mortgage broker