Home affordability issues have caused experts to ponder whether now is a good time to rent or buy. Last July, the Reserve Bank of Australia has released data showing that house prices are rising at a constant rate for the past 6 decades that people may be better off renting than owning property. Wealth advisory group Chan & Naylor believes otherwise, providing us with 8 reasons why you should stop renting and start owning property.
Owning a house is forced savings. Putting your money in a long term investment, such as property offers reassurance in later life.
Owning a house can cover your retirement cost. With the growing issues that the government has in sustaining retirees, a house can be used to pay for retirement.
Break free from the rental market. Renting puts you at the mercy of your landlord who, depending on market conditions, can raise rent at any time and evict you if you fail to meet your obligations.
Owning a house gives you financial certainty. Rent increases with values on the market. Paying for rent will eventually become unaffordable in the future.
Owning a house gives you peace of mind. You are basically purchasing what you can afford. You may need to readjust your finances as rents change.
Owning a house can be passed on to future generations. A house is a great asset that you can easily pass on to the younger generation.
Owning a house is less volatile than stocks and other investment types. Housing may have had its up and downs, but nothing as drastic as the stock market.
Rent options are limited. Only 30% of the housing sector is owned by investors. This is a limited number when looking for properties to rent.
Read more about this on the Property Observer website.