Advantages of Renting

The information in this article is courtesy of iAfrica (Why renting rules … - 23 April 2009).

Tough lending criteria and high deposits have made it impossible for many to buy property. Renting hasn’t just become a reality for those who can’t afford to buy, but also for people who feel like they are spending the best years of their lives with a financial ball and chain around their ankles. Here is why most people prefer to rent:

A lot of people recon that you are throwing water down the drain by renting, but if you take in consideration the amount of money you save when renting, this statement might be nothing but a cliché.

Renting means you pay a monthly fee, which includes all repairs and maintenance should something break. You as the tenant know exactly what amount of money you will spend on you accommodation and you don’t have to anticipate extra costs.

In the first few years of ownership, most of what you're paying into your bond goes to interest, not the capital. Isn’t that almost like throwing money into the water? Also, homeowners needs to be prepared for all other expenses like property taxes, levies, insurance, maintenance fees etc. You might be better of investing in stocks.

Renting is a great option for families that want to expand but can’t buy a bigger property. Renting deposits are relatively low and you can look forward to getting you deposit back. This way your family will have the space they need without breaking the bank.

Renting is a hassle-free way of living without responsibility towards the property you live in. Let the landlord take care of everything.

Renting is an easy way of not tying yourself down. You simply give notice and you are free to go. If you are planning on moving, or if you require traveling a lot, it might be easier to rent as maintenance and costs are low.