Renting Versus Buying
June 8th, 2015 by Geoff Baldwin
Studies conducted by Choice Magazine, The Housing Industry Association and The Real Estate Institute of Australia, all show that in the short term the property renter can be better off financially. However, in the longer term (3 to 5 years), the homebuyer wins, because the capital appreciation in a property far outstrips the renter’s savings.
All the study papers conclude by claiming that it is almost essential to own your own home by the time you retire and the question really comes down to – when you should buy, rather than if you should buy!
“If you can afford to rent in Perth, then you should be prepared to buy, if possible”.
Home ownership has many long-term benefits and the most important of these is the opportunity to build up an asset that will provide a valuable hedge against inflation and financial security in later life.