Renting Vs. Buying A Home In Melbourne: Which Is Smarter?

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Renting Vs. Buying A Home In Melbourne: Which Is Smarter?

Jun 17, 2022

Are you in a dilemma about whether you should keep renting or take that step towards buying your own home in Melbourne? It is a big decision to either rent or buy a home in Melbourne as there are many factors to consider.

Besides the obvious cost factors, it is also about the living situation and your current preferences. If you enjoy moving  around the best Melbourne suburbs, renting is a good option.

However, if you have found your dream home and want stability, you should consider buying one. If you decide to buy this dream home, you can always hire professional removalists in Melbourne to help you pack and move all your belongings and relocate safely.

If you need more help in understanding which option to choose, here are some pros and cons of both options given by experts:

Renting A Home In Melbourne

If you are wondering whether to rent a home in Melbourne, you must first create a checklist of your budget, what your aims are and where you want to stay. You can look at the following pros and cons of renting a home that will help you in this decision:

Pros of renting

  • You have the flexibility to move to any suburb and location in Melbourne and are not tied to one place.
  • If you want to keep exploring new places, you can hire a removalist service in Melbourne to pack up all your stuff and move to a new location.
  • You will be able to save a substantial amount of money and can use this to invest in other areas like studies and personal use.
  • When you are renting a house or apartment, your money won’t be tied up in a high mortgage situation, and you can use that money effectively or put it in your savings.
  • You will also save on costs to repair and fix problems in the apartment as the landlord will have to pay for these costs.
  • Cons of renting

  • When you decide to rent a house, you will have to pay a monthly sum for as long as you live there.
  • Since the rent rates are increasing in Melbourne, your landlord might keep increasing your rent, and you will have to pay hefty amounts.
  • You are not the property owner, so the landlord can evict you at any time and ask you to move.
  • You cannot design and decorate your home the way you want because it is not yours. You will first have to get the landlord’s approval and then decorate the apartment.
  • The landlord can come for monthly inspections at any time to check the apartment and make changes according to their will.
  • Buying A Home In Melbourne

    On the other hand, if you think that your finances are in order and it is the right time to buy a home, you should look at the following pros and cons given below:

    Pros Of Buying

    The best part about buying a home in Melbourne is that it is your own property. You can do whatever renovations and decorations you want on this property, and no one can say anything. You can ask removalist experts in Melbourne to move your items and arrange them according to how you like in your home without consulting with anyone else.

    Besides this, when you decide to invest in a home, you will also be gaining equity. This is the part of the house you own as you keep paying the principal amount of the mortgage. You can invest this equity in a savings fund or any other investment.

    Once you pay off the entire mortgage, you won’t have any more payments on the house, unlike in rent when you have to pay a sum every month. The house value will also increase over time, and you can then decide to sell the property if you wish and get a considerable amount of money.

    Cons Of Buying

    There are also several cons of buying a home, like the vast amount of money you will have to pay for the mortgage and interest. This means that all or majority of your money will be tied up in your house, and you won’t be able to invest in other fields for the time being.

    The interest rates and charges in Australia are also increasing yearly, so you might end up paying enormous amounts for your house. Also, because you are the owner, you will have to pay for any repair work or changes to the property. This could result in large sums of money being invested in the property, affecting your savings and equity.

    Conclusion

    Looking at the above factors might help you decide between renting or buying a property in Melbourne. You should keep your preferences in mind and choose the option that suits you best for the current period. You can always hire a budget removalist Melbourne to move all your belongings once you decide and can move in a stress-free manner to your rented place or permanent home.