Five reasons to stop paying for your landlord’s mortgage and start the process of getting into your own home
1. Comparable costs of renting and mortgaging.
Renting has never been more expensive. In fact, across some regional areas of Australia, it is actually cheaper to pay a weekly mortgage!
Even within the city suburbs; where rent and mortgage payments barely differ; it seems owning your property still makes more sense. According to the Domain rental report for September 2021, the average weekly rent for a house in Brisbane was a whopping $460.
“This is the longest period of rising house rents in 14 years, following five consecutive quarters of rent growth”. (Domain, Rental Report September 2021)
At the rate by which landlords are increasing rent every year, the average Australian leasing will be paying close to $300,000 in rent over 10 years.
2. Long -term investment
Of course a rental bond payment is certainly less daunting than a mortgage deposit, but the financial advantage is short-term and over time you realise how much money you are investing to build someone else’s equity.
You could be building your own equity, paying dividends down the line, for every mortgage repayment you make.
3. Be in the driver’s seat
This letter is to inform you that your lease will terminate on the xx/xx/xxxx and ... ... ‘will not renew’ ... ‘will renew at the increased rate of $$$’ ... ‘will renew for however long you wish to stay at a decreased rate of your choice’
As a renter, you’ll know the last option is clearly a fantasy. Whilst the first two, you are most likely, (and unfortunately), familiar with.
The fight for ANY rental has become a contest of first in, best dressed, cover letter, family portraits and highest bid in hand. With renting now becoming a rat race it’s no wonder taking control of your residence is the logical next step;
- You can devise a budget to account for a mortgage that won’t suddenly be increased by a greedy landlord
- You can truly settle in and let the moving boxes gather dust in your garage
- You can create a life within a community that becomes home for your family
As well as the sense of control homeownership brings, it also brings greater privacy; with no scheduled house inspections or landlords visiting for maintenance reasons, you can have undisturbed privacy when you own your own home.
Furthermore, whilst renting a unit or apartment, it’s likely you shared a wall with your neighbor. Whether you prefer peace and quiet or blasting the footy on the tv; in your own home you have the privacy to live on your terms.
5. Putting the ‘own’ in home-ownership
When you own your own property, the plethora of options when it comes to designing your new home is entirely up to you. Choose an open plan kitchen if you love to host dinner parties, or an extra bathroom for your growing family needs. Whatever you choose, you won’t need to seek permission from landlords, the freedom to put your stamp on things really is in your hands.
Domain rental report Australia September 2021. Cited 20/11/21