One of the most difficult choices that people face when they are looking at houses is the decision to buy a property or rent one. There are several pros and cons to both strategies, which need to be weighed up before the final choice is made.

Read this helpful guide about the key differences between buying and renting, and what these differences can mean for homeowners.

Cost

The ultimate consideration when thinking about buying or renting is the long-term cost of each method. House and land packages in Perth allow buyers to purchase a plot of land along with a house.

Buying a house initially involves paying a large deposit and taking out a loan from the bank in the form of a mortgage. The mortgage will accrue interest, which should be factored into the overall cost by potential buyers.

People should think about their finances before purchasing a mortgage. It is not enough to think about current finances: future earnings should also be taken into account. RedInk's house and land deals in Perth are extremely cost-effective. If it looks like keeping up with mortgage repayments could be a struggle in the future, it could be a good idea to rent a property instead.

Renting is cheaper in the short-term and gives people peace of mind that they can keep on top of their finances. People with less-than-secure finances will feel that they are not locked into a long-term payment plan. Renting could be a lot less stressful but one must calculate the net effective rent factoring in other costs like repairing, taxes, broker payment, and tenure to compare if renting is the right option for them.

Cost Summary: Buying is cheaper in the long-term, but renting removes the pressure to keep up with payments over a long period of time.

Landlords And Repairs

Dealing with landlords can be one of the most stressful aspects of renting a house. Some people may feel that their privacy is being invaded if their landlord turns up at short notice in order to inspect the property. Also, renters will be unable to modify the house they are living in because they do not own the property. However, dealing with problems is the landlord’s responsibility, which means that renters won’t have to fork out money for expensive repairs.

Buying a house means that people are masters of their own destiny. The advantages of this are an increased sense of privacy and the ability to make renovations to the house without someone’s permission. If problems occur, this can be stressful for homeowners because there is no-one else to shoulder the responsibility of fixing them.

Landlords And Repairs Summary: Renters may have to deal with difficult landlords, but problems are not going to leave them out of pocket. Owners are in control of their house, but must pay to fix any issues.

Resale

Reselling a property could potentially make people a lot of money, which is not possible if the house is only being rented. However, the selling process can be extremely stressful for homeowners, which is something that renters will not have to worry about.

Resale Summary: The potential to make money on a sale is attractive, but renters will be free of the stress that sometimes comes with selling a house.