Everyone knows the housing market is hot in Australia these days, with first-home buyers and investors duking it out for a lucrative property. But irrespective of the returns these purchases often generate, many people still prefer to rent over buy.
While there’s a common expression that “rent money is dead money”, the truth is a little more nuanced. Renting in a great area close to work makes complete sense for some people, while the extra fees and maintenance involved mean some people are totally satisfied with their rental.
With this in mind, check out some of the main reasons people choose to rent rather than get involved with the property market.
No Maintenance Costs
When you own a home, you’re liable for virtually all the costs involved with its upkeep. This responsibility certainly shouldn’t be underestimated, with many maintenance and repair jobs running into the thousands.
However, renters simply don’t have to stress about what it costs to keep a house in great condition. If a crack happens to appear in the plumbing or an appliance fails, all they have to do is get in contact with the landlord to organise a fix or replacement.
Most people want to live in a great neighbourhood, but the cost of purchasing a home is a big hurdle that many people can’t overcome. Instead, renting provides a great option for those who value having the lifestyle of their dreams.
In addition, renting is preferable for people who are constantly moving around. Whether that’s due to their career commitments or just because they like the freedom to live wherever life takes them, the flexibility of renting can’t be overlooked.
Fixed Rental Costs
When someone signs a lease for their rental, they can accurately forecast their rental costs for the entire duration of their agreement. While a renter’s costs might go up when a new lease is agreed upon, they won’t get stung by additional fees in the intermediate.
However, the same can’t be said for homeowners with council rates, insurance and variable-rate mortgages having the potential to fluctuate significantly. If you prefer to always understand your financial commitment, renting might be the best option for the time being.
Speak with the experts
Looking to rent or find a tenant to house your investment property? Getting in touch with a talented property manager makes the process quick and easy. If you’re ready to find out more, reach out to the team at InStyle Property Management to chat about your options.