Is It Really Best To Buy House Instead Of Renting?
Dec 14, 2022
Buying a house is one of the biggest decisions in anyone’s life. It has a serious impact on your financial standing, the standard of living and quality of life. Owning a home is everyone’s dream, but it is not always possible, which is why renting a house is the only option for many people in Perth.
Renting a house is not a bad option if you frequently relocate, moving to a new city or need to live in a catchment zone of a good school. You can move house without stress, as reputed removalists in Perth offer professional support.
However, if you can generate the capital to own a house, is it the right decision? Not always. There are pros and cons of buying or
renting a house in Perth, and here is your complete guide that can help you decide what to do.
Buying or Renting a House in Perth
According to the REIWA Curtin Buy-Rent Index, the median house prices in Perth needed to grow over 4.3% annually in the next decade to make buying a house a good decision. The median house price in Perth is $520,000, and the median rent is $520/ week.
The average mortgage monthly cost is $2,691which makes renting a house in Perth a better alternative for some residents but not all. The state’s housing market has witnessed steady growth in the last 15 years, meaning it can be profitable to own a house for you if you don’t want to pay rent of the same amount as the mortgage.
What’s more, if you are ready to
move to a suburb, there are multiple ones in Perth with cheaper mortgage rates than rent. According to experts, Perth has nine suburbs with median house prices less than the median house price in Perth.
Additionally, the cost of paying a home loan EMI in 112 suburbs is more affordable than the rent. Therefore, there is hope if you want to become a homeowner, but before you decide, consider the pros and cons of both options to make an informed decision.
Pros & Cons of Buying a House
Purchasing a house is not a decision you can make lightly. It must be in your best interest to look at the pros and cons of house buying.
- Since of ownership, security and stability
- You have a physical asset, and paying the mortgage is practical.
- Save moving expenses because you don’t have to relocate frequently and hire professional removalists in Perth.
- No flexibility because you cannot change residence quickly. In case the area is unsuitable, or you need to move for a job, it is tough to relocate.
- You have to pay house tax, maintenance charges and other legal issues.
- High upfront costs like down payment, closing costs, etc.
- Non-predictable monthly costs.
Pros & Cons of Renting a House
Renting a house provides flexibility and is a better choice when you need to move frequently. About 54.9% of Perth City residents rent privately, and if you are considering renting a house, here are the pros and cons.
- You cannot make customisations or renovations to your house without approval from the rental provider.
- Rent can change at any time
- You can be asked to move out in the rental property is sold or becomes unfit for habitation.
- You must abide by the terms and conditions of the lease agreement.
- Rent can be lower than a monthly mortgage, but the disadvantage is that you aren’t paying to build a physical asset.
- The rental provider is responsible for maintenance and repairs.
- You can relocate for a job, on behalf of your spouse, for better schools and for other reasons at short notice.
- Usually, monthly expenses are predictable.
- Renting a house, if possible, even with no/zero credit score.
What Should You Do?
Perth is an established, well-made and modern city. It is the capital of Western Australia and the driving force behind the state’s economy. Over the years, the city has developed versatile housing, and you can find abundant houses for renting or buying here.
While buying a house in Perth city is still more expensive than renting, if you want to move to the city and it is your first time, the best option is to rent a house. However, if you are willing to live in a Perth suburb, you can find a house to buy, which will be cheaper than paying rent.
The Bottom Line
Buying or renting a house is a personal choice based on your income, life goals, current circumstances and family. Therefore, use this guide to make an informed decision. Also, hire professional removalists in Perth for
reducing your moving stress and costs, irrespective you plan to rent or buy a home.
