Is Owning Your Home Better Than Renting One in Perth WA
The age old debate of renting vs. buying a house continues to go on. But the fact is that it depends on a number of variable factors as to whether renting or buying a house is better. Factors such as location, prices of real estate and personal conditions such as income are important in choosing to rent or buy your home. In this article, we will discuss which way of living is better in Perth WA.
Cost of mortgage lower than rent
The biggest concern people have about buying a house is that it’s generally more expensive than renting. But that’s not always true. Depending on the town and neighbourhood, it could be cheaper to buy a home on mortgage than to rent one. Suburban neighbourhoods in Perth such as Rockingham, Mandurah, Spearwood, Cooloongup, Bays water Orelia, Glendalough Parmelia, Midland and Armadale are some of the locations where mortgage repayments are more affordable than rent payments, according to a report by Aussie. What led to this was a continuous fall in real estate values and mortgage rates in Perth, along with a surge in rent prices.
Another research by Domain has found that buying a home in Perth would save you $245 per week in rent. The mortgage costs are around $206 a week, whereas the rent is calculated at $451 a week.
Home ownership is a long-term investment. Home prices keep fluctuating according to market conditions but in the long run, the value of your home is likely to appreciate. So buying your own house is also an investment that would give you hefty returns in the future. Besides, the equity on your property keeps building up as you pay the mortgage. This equity can be used to fund large personal expenses including education, wedding, car, or investment property.
Additionally, you can also avail some good tax benefits for owning a home in the long run as you don’t have to pay taxes on capital gains on your primary place of residence.
Security and stability
A sense of security and stability is one of the most notable benefits of owning a home. This is true in two ways. First, you can be assured that you wouldn’t be evicted as long as you make the mortgage payments regularly. You also don’t have to worry about rent increase, terms of lease and tussles with the landlord. Besides, you have complete freedom to do what you want with your home, be it renovations or minor changes. Secondly, having your own house gives you a sense of satisfaction of home ownership as it is an aspiration for most people.
Apart from the benefits stated above, you can also rent out a room in your home to bring in some extra income. You have the option of getting a long-term tenant or short-term ones on . Thus, owning a house could be the better choice than renting due to a number of reasons. To know more about buying a house in Perth, WA, contact us here.