Why it is better to own a home than renting?

If you are a first home buyer, you must be thinking whether it is worth to buy a new home, or you should just go ahead with renting a one. When you take a look at the Australian property market, you will figure out that buying a home is not an easy thing to do. But if you can somehow afford to buy a home, you will be provided with a large number of benefits.

Here are some reasons that explain why buying a home in Australia is always a good option available for you to consider, instead of renting a home.

1. It would be a good investment

You will have to spend a considerable amount of your money to purchase a new house. This investment property can benefit you in the long run. Therefore, it is even better to go ahead with a mortgage loan, if you are not in a position to spend the full amount of purchasing a new home.

When you become a homeowner, you will be provided with financial stability and a valuable asset. But you need to make sure that you are purchasing your house from an area, where there is appreciation of assets. Then the value of your house will increase along with time. Therefore, you will even be able to sell your house at a higher price tag in the future. This investment can also provide an excellent assistance for you to create a financial foundation for the upcoming generations.

2. You have the freedom to make your own modifications

When you purchase your home from one of the real estate agents, you will be provided with the chance to go ahead and do all the modifications in it according to the specific requirements that you have. After purchasing a house, you need to create a personalized living space in it. Then you will be provided with the chance to enjoy your stay. But when you are renting a house, you will not be provided with the ability to do it. You cannot even do a simple modification without the permission of the property owner.

When you become one of the home owners in Australia, you don’t need to get permission from anyone to do the modifications in your house and create a personalized living space. For example, if you want to paint one of your rooms in a specific color, you can go ahead and do it. Likewise, you can add a deck, replace the cabinets and do many other modifications according to the preferences that you have.

3. You know how much you have to spend per month

When you buy a new home with a mortgage loan, you will be provided with predictable monthly repayments. In other words, you know how much money you will have to allocate for the house on every single month. But this will not be valid for renting a house. That’s because the landlords would tend to increase the prices of homes along with time. This can lead you towards financial issues in the long run.

4. You have a Tax Free asset

Owning your own home or “Principal Place of Residence” PPOR does not attract any tax. Property in Australia doubles around every 10 years so if you buy an investment for $500,000 and it doubles in value to $1 million, you will be required to pay tax on the profit you have made. When that property is your home, there is no tax.

5. It’s yours

Last but not least, you need to understand that purchasing your own home can provide you with the chance to keep peace of mind in the long run. That’s because the property you buy is yours and you will not have to return it to anyone else.

Renting a house can be considered as a financially stressful thing to do. You are spending a lot of money to rent the house, but you will not be able to get them back. But when you buy a house, even with a housing loan, you will be able to make sure that you are getting the return out of your investment in the long run. This will provide you with the opportunity to go for your retirement peacefully as well. That’s because you know that there is a place of your own, which you can spend the rest of your life.