The Surprising Benefits of Renting
The idea that renting is a waste of money is a misguided oversimplification. It’s important to know that renting is the norm in many places and it could be more suitable for individual lifestyles.
Australia’s rental industry sustained a massive impact due to COVID-19 pandemic. Many are financially struggling due to unemployment or reduced income, which makes renting a more attractive option. Additionally, now could be the best time to sign a lease because experts are predicting a widespread increase in home prices as the economy recovers.
Maintenance Is Taken Cared Of
Burst pipes, creaky stairs, leaky toilets—these are just some of the things you won’t have to worry about as a renter. Landlords are responsible for maintenance, repairs, and improvement in the property. Suppose the place is under the supervision of a professional property manager, in that case, it’s very likely that they have a standing relationship with local tradespeople to ensure that the problem can be addressed promptly.
Flexibility for Downsizing
Downsizing means moving into a smaller dwelling. People downsize for various reasons, and one of them is to gain financial independence. In this time of the pandemic, transferring to a more economical living space might be a smart move. According to the survey, 50% of Australians aged 55 and above are thinking of downsizing.
It’s easier to downsize if you’re only renting. You simply have to wait for the lease to end. No home staging, marketing, real estate documents, etc. needed.
Such flexibility is particularly beneficial for retirees who prefer to live in a place that matches their budget.
Little Concern About Decreasing Property Value
According to Credit Capital Home Loans, “Property value is constantly moving, sometimes in dramatic ways. The fluctuation significantly affects homeowners, but its effect on renters is much gentler. Take note that house value influences your property taxes and mortgage payments. In a shifting real estate market, renting might be more practical for some people.”
Rent is Fixed
The rental cost will be as indicated in the lease agreement. Landlords may change it only after the lease has expired. This allows you to have more control over your finances because there are no surprise increases.
While fixed-rate mortgages also allow more efficient budgeting, adjustable-rate mortgages oscillate—which often results in an increase in mortgage payments from higher interest charges.
Access to Amenities
Another subtle but substantial benefit of renting is being able to access amenities that would be incredibly expensive to build on your own. Fitness centres, lounging pools, and green spaces are standard amenities in the middle to upscale apartment complexes.
Depending on the material, the installation of an in-ground pool can cost between $35,000 to over $100,000 in Australia. So, if you’re on a budget and you rarely swim, consider renting a place with your desired amenities.
Bottom line:
Don’t be stuck in the stigma that renting is a waste of money. Sit down and calculate your expenses to be sure that renting is more financially sensible for you.
Are you searching for a residential or commercial property for rent in New South Wales? Laing+Simmons can help you! We are one of the most trusted real estate boutiques in Australia that has been connecting buyers, sellers, landlords, renters, and property managers since 1967.
