Nowadays, it seems that interest rates keeps on rising over time – this has become one of the most popular issues Western Australians talk about. With wage growth remains relatively flat while other household expenses and bills, many individuals and families experience stress and panic mostly caused by mortgage stress.
Many households struggle financially these days. Many experience stress caused by mortgage interest. Some suggest that selling home and renting a new one could be a better, smarter option. It could be difficult to entertain, right? However, it can be just a smart option to consider.
Buying versus renting a home has been an old debate. Both sides have valid points, so it can be a bit confusing. Like we’ve mentioned, recent changes in the tax law have also made owning a home less financially advantageous, so the buy vs. rent dispute continues to evolve.
Sure, many would argue that buying a new house to build equity for your self instead of paying monthly rent to your landlord is a wiser decision. But in reality, there are many financial reasons why renting may be more compelling.
Keep in mind that buying a house is a major investment and life decision. It is not as simple as it sounds. So, you first need to make sure you understand whether or not you are even in a good position to purchase a new home. Your finances are not your only consideration either. So if you struggle socially, professionally and most especially financially, now is probably not the right time to be buying.
Renting is the better option if you are struggling financially. Cost is the most obvious advantage of renting. Although rents can increase, monthly payments are typically less than buying a new house. Paying rent isn’t a waste of money. Yes, you won’t see your money again, but you get a place to live for you and your family. Even when you buy, you’ll be spending a lot of money on interest payments, taxes and other fees.
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