Why renting has its hidden perks
When it comes to discussion of property, the focus often turns to home ownership. But the reality is a third of the Australian population do not own the home where they live.
Instead, they rent, and it’s a lifestyle that is not without its perks.
So, what exactly are the hidden perks of renting, and why is it a choice that so many Australians embrace?
All care, no responsibility
One of the big benefits of renting is that the rental occupier looks after the property day-to-day but the major maintenance tasks are the responsibility of the owner.
And for many renters that’s a big plus.
While you might have to keep the property in good order and occasionally tend the garden, should something big break – such as the hot water heater – or the gutters require cleaning, that task falls to the owner and your property manager.
Try before you buy
If you’re heading to a new city or suburb, renting offers the opportunity to try that area before you consider buying.
You can get to know whether the community suits your needs, if the local amenities are up to par, or whether the suburb location and schools are all that you’d hoped for.
If purchasing property is on your agenda, this allows you to really know the local market and how it feels to live in that area long before you create a wishlist for what you want to buy.
Affordability
It’s no secret property prices have risen a lot over recent years, and in many cases renting a property in a specific location is far more affordable than the monthly mortgage cost of buying there.
For renters, this allows them to enjoy the best of both worlds. They can rent in a suburb they love, but without the commitment of a monthly mortgage or without the cost of maintaining that home.
This scenario has also led to a rise in the trend known as ‘rentvesting’ where people buy where they can afford but rent in the location they love.
Additional flexibility
Sometimes factors beyond your control might see you move to a set location. It might be for higher education, a job, or other life circumstances.
But this may not be the actual location you hope to permanently call home.
In this instance, renting provides the flexibility to live somewhere for a set period of time, without worrying about the hassle of buying then selling a property, along with the additional costs involved, such as stamp duty and capital gain.
A path to home ownership
An often underappreciated fact about renting is that it can offer a viable path to home ownership.
That’s due to the fact the rent you pay is a weekly outgoing expense that some lenders look at as genuine savings when it comes to assessing whether you are eligible for a loan.
That means you may not be required to save as much as usual in order to apply for a mortgage, because if the lender can see a track record of consistent payments that are made on time, it indicates your ability to manage a financial commitment.
It showcases your ability to service a mortgage.
You will still need a loan deposit, and not all lenders count rent as genuine savings, but if they do it can help you get into a property sooner.
How we can help
Our experienced property managers pride themselves on establishing great relationships with both rental occupiers and owners.
We manage every property as if it were our own and you can learn more about our property management services here.
Alternatively, if you are looking to rent a property, you can view the properties we currently have available here.
