|Buying and renting property each have their own benefits and downsides, with the right option ultimately depending on your current circumstances and goals. Mortgage Masters are the mortgage broker Auckland borrowers can count on for independent advice on refinancing home loans. Below, our team compares the benefits of each option to help you decide whether it’s time to get on the property ladder.
Benefits of Renting Property
For some renters, there’s simply no way to get a house deposit together. For others, it is only possible if you sacrifice more important, current goals.
Other benefits of renting include:
● Flexibility to travel and move cities or even countries
● Not having to deal with home maintenance, especially major projects like replacing the roof, fixing leaks or repainting
● You can afford to rent in an area you couldn’t afford to buy in
● You don’t have to commit to living (and working) in one place.
● More funding and time available for career/business goals, hobbies, recreation, and other short-term goals.
Of course, there are downsides such as the uncertainty of short-term leases and restrictions on how the property can be used. Instead of investing in your future, you’re paying rent to pay off someone else’s mortgage, which can feel like you’re selling yourself short.
Benefits of Buying Property
Even if you can’t afford to buy your own home right now, deciding on it as a goal can provide the motivation to plan and follow a realistic path to home ownership. Benefits include:
● It’s an investment that can make you money later in life
● Stability and control of you and your family’s future
● It’s yours! Meaning you can do whatever you want with it
● Buying a home can cost less than renting over time.
Of course, these benefits must be weighed against the huge, long-term financial commitment you’re agreeing to enter. Once you own a home, you’re subject to other ongoing costs from council rates and insurance to maintenance and major repairs.
Key Factors to Help Decide
If you are interested in home ownership, investigate whether the amount you would pay in rent is equivalent to the amount you would be paying on a home loan. Consult an Auckland mortgage company for help. They can advise you on the costs involved in paying a deposit and servicing a loan and juxtapose that with rent costs. The best mortgage broker Auckland buyers can find will be able to see if you are eligible for various schemes to help you get on the property ladder.
For example, by applying for the First Home Loan Auckland first home buyers only require a deposit of 5%. You may also qualify for a KiwiSaver HomeStart grant of up to $10,000. If you’ve been a member of KiwiSaver for at least three years, you may also be eligible to withdraw money from your super account to use as a deposit on your first home.
Consult the Best Mortgage Broker Auckland Has to Offer
At Mortgage Masters, the independent advisors at our Auckland mortgage company can help you access the best home loan Auckland property buyers can get, ensuring it services you as a long-term investment. To find out about home loan requirements NZ clients should get in touch today for a free consultation.