It’s frustrating that renting tends to get a negative rap in Australia when there are so many benefits to this accommodation option.
At Professionals, we value our tenants and understand that renting has plenty of advantages. Take a look at why leasing a home can be the right choice for you.
Benefits of renting
1. Cheaper than a mortgage
People say that when you rent, you are “throwing away money”, but the reality is that mortgage holders are doing the same thing when they pay interest on their home loan.
On average, a typical Aussie homeowner spends $3,841 per month on their home loan repayment, while renting costs an average of $2,715 per month. Mortgage holders pay a lot of interest, which is money they will never see again. The trade-off is that their home should rise in value, but this isn’t always the case and it’s possible for values to stagnate for several years.
When you look at it this way, renting can help you maintain a better lifestyle and save you from the ‘dead money’ of interest payments. Some people decide this choice makes sense after assessing their finances and personal goals.
2. Less stress over repairs and maintenance
Every home needs looking after and it is inevitable that things will break or stop working. Pipes burst in the middle of the night, ovens break and taps start to drip. When you rent, the cost of repairs will be covered by your landlord, and your property manager will arrange for someone to take care of things (they have a list of reliable and responsive contacts so you don’t have to scour Google trying to find someone).
When you decide to rent, you’re avoiding the $5,000+ Australian homeowners spend every year on repairs and maintenance. You also avoid paying strata fees and council rates, which can add up to thousands of dollars per year.
3. Flexibility to move where life takes you
You might not think flexibility is a big deal until that dream job in Brisbane comes calling while you’re living in Perth. Once your initial lease has expired and you are on a month-to-month contract, renting gives you the freedom to pack up and chase a new career opportunity without the hassle of selling a house or worrying about the property market.
Selling a home to relocate costs thousands of dollars, which is why many Australians choose the benefits of renting.
4. Live in your ideal suburb
An ocean view apartment may be out of your reach to buy, but you could afford to rent and enjoy the lifestyle in your ideal area for a fraction of the cost.
What’s more, if you rent in a quality suburb close to work, you’ll be saving on transport expenses.
5. Try rentvesting
It’s also possible to have the best of both worlds. Instead of tying up all your savings in one home, you can rent where you love and buy an investment home or unit elsewhere. This strategy is called rentvesting, and it’s a great way to get your foot on the property ladder while living somewhere you love.
To rentvest, you’ll need the help of an out-of-area agent who can help you choose the right property to buy in an up-and- coming area,and a property manager who can help take care of the place for you. It’s a great option if you love where you live and don’t want to move but you still have buying in your sights for the future.
How to ensure a positive rental experience
Renting brings more benefits when you lease a home with the help of a reliable and professional property manager. This expert will ensure your home is kept in good condition and that the terms of your contract are in accordance with local laws.
Need a reliable guide to help you make the most of renting? Reach out to your local Professionals property management team today.
