There are more benefits to owning a property rather than renting a property.
- When you rent property you are servicing someone else's debt. It makes perfect sense to rather service your own debt and in doing so you build up a credit record.
- Renting a property means it never belongs to you and you can not make improvements to the property to suit your needs.
- Interest rates with banks are not going to decrease in the short term, the longer you postpone buying a property the more that property will cost you in the long run.
- When you rent a property it is a market norm that your monthly rent will increase by at least 10% per annum.
- Buying property you have interest rate increases with banks which is never anything near 10% per annum.
- You can negotiate a fixed interest rate with your bank when you buy property, for a fixed period, this is non negotiable with landlords.
- When you buy property you own an investment which increases, property value increases and is thus offset against interest rate increases.
- Renting property you do not have the added value of the increase in value of your investment. Renting property is not an investment.
- When you buy property you are essentially enabling yourself to grow your investment through upgrading to larger property and larger bonds thus extending your credit worthiness.
- When you buy property you can make improvements to the property and in doing so also increase the value of your investment.
- When you rent property the only growth you can expect is the interest gained from your safety deposit money in a trust account with the landlord or attorney. Is this really an investment ?