Newspaper article Daily Examiner (Grafton, Australia)

Five Reasons Buying Your Own Home Trumps Renting

Newspaper article Daily Examiner (Grafton, Australia)

Five Reasons Buying Your Own Home Trumps Renting

Article excerpt

SOMETIMES it can feel like only real estate sales people trumpet the virtues of buying a home.

So, in real-life terms, why is buying better than renting?

Determined to find out if buying your own property has the edge over paying weekly rent, we consulted the experts - people who recently bought their first properties.

Here's their top five reasons buying a home trumps renting one.

1. It creates investment options

Sarah Kelly and her partner Matthew Soccio bought their first property in August last year. They paid $550,850 for the three-bedroom, two-bathroom house with two off-street car spaces on 302sqm in West Footscray in Melbourne's inner west and currently live with family to save money for travel.

Sarah says the house offers the handy pair - Matthew is an electrician - future opportunity to renovate its kitchen, bathroom and/or backyard to increase its rental income.

For now, it's easily tenantable.

"We are negatively gearing it until we save more money to move in and pay more off the mortgage," Sarah says.

"This has allowed us to have more spare cash to travel, we recently went overseas for three months, and also to save more money to put towards the house."

If the property's value increases significantly over the next 10 years, they plan to sell it to buy a bigger property in the same area, which they will renovate and occupy while paying down its debt.

2. It can make you money

Sarah says buying trumps renting because you are using the money you must pay for some form of accommodation on an appreciating asset.

"Buying trumps renting because as you pay off your mortgage you're contributing your money to your house, which in many cases is also an asset which will increase in value over time therefore making you money as you pay more off," she says.

Natasha Dwyer bought her first home this year; a three-bedroom apartment in the southern beachside Sydney suburb of Cronulla. …

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