Owning a Property:
- You are accumulating your own wealth.
- You have the ability to customise the property to suit your own needs.
- Most investors borrow to invest in property. The monthly loan payments are likely to decrease over time as you pay-off the loan. If you are to pay a mortgage or rent, directing that expense to accumulating your own wealth will help you more in reaching retirement.
- Owning an investment property will earn you rent. The expenses are also generally tax deductible.
- The value of the property is anticipated to accumulate in value.
Renting a Property:
- You are accumulating your landlord’s wealth.
- Your monthly payment will generally increase overtime with indexation and rental demand.
- In most cases you are restricted in what you can do to the property. You are limited in customising the property as it’s essentially not yours.
- The rental payments are generally not tax deductible.
- When renting a property, you are not liable to pay for council rates, owners corporations fees (if any) or water rates.
In summary there are number of differences between renting vs owning a property. If your preference is to buy your own property, please don’t hesitate to contact us. We can help!
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more, please contact us. We welcome the opportunity to assist you.
Aug 2019
