Renting Vs. Buying A House This Time of Pandemic: Intellichoice Finance [Part 2 of 2]
Getting a mortgage, as far as low interest rates are concerned, is attractive to many borrowers. With the government's fiscal stimulus package that aimed to lower interest rates more and more borrowers can now afford getting their mortgages at this time of high uncertainty.
Buying a house: Pros
If you are paying your mortgage on a principal-interest basis then you're getting a little piece of equity each time you make those payments and therefore you're building your wealth or your building your net value.
You can renovate within certain guidelines depending on your mortgage provider. It can increase its value sometimes property prices. If you decide to move out or go overseas, then you can rent the property out yourself and become a landlord in turn.
READ MORE: Renting Vs. Buying A House This Time of Pandemic: Intellichoice Finance [Part 1 of 2]
Buying a house: cons
When you get a mortgage, you don't technically own the house, the bank does.
Deciding whether to buy a house depends on your personal circumstances at the moment.
Your present circumstances dictate whether you're better off renting or buying a property and how solid you feel in the near future.
Utilizing a selection of the Intellichoice Finance Calculators and in particular the "Renting vs Owning Calculator" may be a great tool for many.
Darin Hindmarsh is the founder and CEO of Intellichoice Finance, a broking firm based in Brisbane. He's been providing financial and broking services in the past 18 years. Hindmarsh is also finalist in the 2020 Australian Mortgage Awards - Pepper Money Broker of the Year – Specialist Lending.