Buying a home in NSW may be one of the biggest decisions in any person’s life, but is it the best one? This is never an easy decision since both buying and renting have many benefits. You will have to examine many factors, such as career goals, personal finances, and lifestyle desires before you can arrive at the best decision.
There are many benefits of living in NSW, but you first need to know whether you will be buying or selling. Here are the pros of buying or renting a house.
Benefits of Renting Instead of Buying a House
Some people may prefer to rent a house because of the following reasons:
Moving Out Flexibility
Tenants can easily change apartments, but the process of relocation can be more time-consuming and costly for homeowners. In addition, renters can afford to live in neighbourhoods where they can’t afford to buy a house. The rents may be high in these areas, but it will still be a fraction of the house’s buying price.
It’s Cheaper Upfront
Renting a house comes with some financial obligations, such as security deposits and the commission of a real estate agent in NSW. Nevertheless, the total costs are minimal when compared to the cost of buying a house. At the same time, the rent may be lower than the combined costs of home repairs, property taxes, and monthly mortgage costs.
Repairs Are Not Your Responsibility
As a tenant, you won’t have to worry about any arising repairs, such as a broken dishwasher, running toilets, or cracked windows. Most of these repairs will have to be financed by the management company or your landlord. While your rent lease may require you to pay for some repairs, any repairs that do not result from your actions have to be paid for by the landlord.
Avoid Real Estate Taxes
One of the biggest benefits of renting is that you don’t have to pay any property taxes. In some areas, paying property taxes can be a very costly expense. For instance, the average real stamp duty for real estate properties in NSW stands at 4% of the entire value of the property.
Benefits of Buying a House Instead of Renting
Buying a house can be costly, but it has some immense benefits.
Buying Is Cheaper in the Long Term
Buying a house can be considerably cheaper than renting in the long term. This is because you will never recover your monthly rent payments. This is a financial setback, as it will be difficult to build enough equity. On the other hand, a home is a stable asset that will increase your equity. You can always ask an NSW realtor to sell the house for you and recover your money, sometimes even at a higher price.
Ability to Customise
You can carry out any remodel or renovation on a house that you own. For instance, you can repaint the walls, create a backyard bar, and even build a new roof. This level of flexibility may not be possible in a rented apartment.
Final Take
Many factors influence the decision on whether to buy or rent a home. While your financial position plays a key role, other factors, such as taxes, the need for flexibility, and long-term lifestyle goals, can also come into play. Contact us to learn why live in NSW and how you can find homes in NSW.
