Many Gen Y’s are worried that they may never be able to get into the property
market altogether, due to the rising concerns over affordability.
Some experts claim that the Australian housing market, is too expensive,
so it makes more sense to rent.
Who is Right?
There are Pros and Cons either way and it is really up to the individual
to decide which option suits them better.
· Rent can be cheaper than
Mortgage Repayments in expensive Inner City suburbs
· Avoid costly maintenance,
repairs, Rates & Insurances.
· Uncertainty/no stability,
no say in how long you can Rent for
· The home is never yours
· Property Manager and
Landlord can come in at any time after giving due notice
· You cannot make any
changes to the property without permission
· Rent prices also increase
· You never stop paying
Rent, whereas Mortgages are paid off in 25-30 years
Becoming a Renting Investor.
There is a growing trend for young buyers to keep renting and buy and
Investment Property before buying their own home.
Some of the reasons this is happening is:
· Home ownership in the
desirable suburbs is too expensive so they rent (Inner City, Café Culture etc)
· Some live at home rent
free with parents and save money for an Investment Property to get their foot
in the Housing Market door later
· Their lifestyles are
still in flux, planning to travel, haven’t set down their roots yet etc
· A burdensome non tax
deductible mortgage is not that attractive to them
But is Rent Money Dead Money?
Not always, there are arguments for continuing to rent and buying an
Investment Property first.
Owning an Investment Property, means that expenses like Rates, Insurance,
Maintenance and the Mortgage are Tax deductible.
Plus, a further, tax deduction for depreciation of the property and the
internal fittings and fixtures.
They can further save money by using a property management system like RealRenta.com.au, which does everything
a professional property manager does but without the price tag.
RealRenta it’s just a better way to manage your rental property.
Friday, 8 April 2016