Renting has become a norm for most Australians, and more and more people, especially the millennial generation, end up paying vast sums of money as rent each month. At Stop Renting Perth, we understand that most people who rent a property do so because they don’t have any other option; this is why we are here to help you stop renting and start buying your own dream home.
However, many people who come to us ask us what benefits they would get if they stopped renting and financed a home for themselves. If you are one of those people who are not sure if buying your own home will be beneficial for you or not, then keep reading. This article will explain in detail the key benefits of buying a home instead of renting.
When you stop paying rent and start to own a home in Perth, you can preserve your income
Like other major cities in Australia, when you stop paying rent and start to own or finance a home in Perth, you can save a significant chunk of your income. A recent Rent vs Buy report showed that more than 60% of suburbs in Australia are too expensive to rent a house in.
On the other hand, buying or financing a home in these suburbs was more affordable. When you finance or buy a home instead of paying rent, you save a significant portion of your income while building an asset.
The money you pay for a monthly mortgage will be added to the value of your home. On the other hand, when you are on rent, the money you pay does not increase your net worth. Our team strongly believes that rent is the money you never get back; instead, you increase your landlord’s wealth.
When you buy or finance a home you can call it yours
The most obvious yet most important benefit of owning a home in Perth is that it belongs to you, and no one can evict you from it. Our clients who went from paying rent to getting their own homes reported feeling a sense of stability and security when it comes to their families.
On the other hand, when you live on rented property, your landlord always has a fear of being evicted, which is the last thing a family wants to go through.
Your wealth increases over time when you own a home
As mentioned above, when you are paying rent, you pay dead money to your landlord that doesn’t increase your wealth. On the other hand, paying mortgage payments adds to your wealth as your home is in your name.
So you can think of mortgage payments as an investment because when you need money, later on, you can take a second mortgage based on the equity you have in your home.
If you are someone who wonders is renting a waste of money? This article should clear your confusion.
Ready to stop renting and start owning your own home? Get in touch with us.