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To buy or to rent? That is the question

ByKevin Kelly

The decision over whether to buy or rent a house is not one to be taken lightly. While there are plenty of Bunbury rentals and real estate to purchase available, it all depends on you and your own financial situation.

Here are three things you should consider when thinking about whether to buy or to rent.

How long do I want to live here?

It's true that real estate generally increases in value, but the key term here is generally. If you're only planning on living in an area for the next five years, for example, renting might be a better option than buying. If in five year's time your purchased home hasn't appreciated enough in value, you may be forced to sell at a price that actually loses you money. When you know you'll be living in an area for a long time, the ups and downs in the market can more easily be ridden out.

How much money do I have to play with?

The lifestyle implications of buying v.s. renting should play a part in your decision. If buying a house means all of your money will go towards paying off the mortgage, you're not going to have any spare to live the kind of life you want to. On the other hand, if you're in a comfortable financial situation, buying could be a better option, as you'll have the chance to build equity instead of just paying rent into another landlord's pocket.

Do you want the freedom to change your home to your liking?

If you're the kind of person who enjoys DIY and changing a space dramatically to make it your own, buying is your best option. While you can customise a rental to your liking, the scope for doing so is undoubtedly more limited. 

Is there another option?

If you're still not sure about whether to buy or rent, there is a third option – rentvesting. This is the practice of purchasing an investment property while also continuing to rent your main place of residence. It can be a good option for people who aren't sure where they're going to end up but still want to be on the property market. With a solid property manager, it's possible to keep an investment property running smoothly in a city you no longer live in.

For more on houses to rent or buy in Bunbury, get in touch with the team at Ray White today.

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