4 Reasons Why Buying A Home Is Better Than Renting
Many New Zealanders are interested in the prospect of owning their own home, but it can be hard to weigh up when the right time to buy is and if buying is truly better than renting. As a result, many potential buyers find themselves unsure if it’s truly a good idea to purchase a property.
As you research for a new home, it is important to make an informed decision as buying comes with additional costs such as rates and maintenance costs that are not associated with renting. Even with this considered, one of the most compelling reasons to consider buying a home is that it allows you to invest in your future. In this article, we’ll unpack a bit about why we think buying a home in New Zealand is better than renting.
Buying a Home is an Investment
Buying a property is a financial commitment that typically gains value over time. In general, the real estate market tends to appreciate, meaning if you decide to sell your home later, it is likely you might get more money than you initially paid. This makes homeownership an appealing investment for those aiming to secure their financial future. Additionally, the varied options available for home loans make buying a home more achievable, as aspiring home buyers can often select a home loan that suits their financial situation and goals. As you begin to make mortgage payments, you build equity on your home, essentially paying towards an asset that is yours.
A Fixed Mortgage Can Stabilise Your Budget
Financial stability and budget management are important considerations for potential home buyers. A significant advantage of buying a home over renting is that it allows you the option of securing a fixed mortgage. This means for a chosen period your mortgage rate/s will consistently be the same. When you are renting, subject to the rates your landlord chooses to apply, this may increase annually or be reviewed more regularly than a fixed mortgage solution.
This allows homeowners more stability by budgeting and planning for their financial future with greater certainty. Having a fixed mortgage payment can provide more of a sense of security when considering other living expenses.
Property and Home Customisation
Buying a house in NZ allows you the freedom to customise or personalise your property as you see fit. You can add things to your property that may add potential value to your investment. This may include making structural changes, renovations, and improvements that enhance the functionality of your home. Whether it is adding a new room, shed, kitchen, or bathroom renovation, improved plumbing, or landscaping, homeowners have the autonomy to shape their living spaces according to their needs and preferences.
House and land packages are gaining popularity as they provide prospective homebuilders with the advantage of knowing the total cost of their home and land upfront as well as the ability to customise your new home. Learn more about the benefits of buying a house and land package in one of our blogs.
The Sentimentality of Owning Your Own Home
Whether this is your first time buying a home or if you are returning to the market after renting for a time, there will always be a sentimentality attached to homeownership. Having ownership over such a valuable asset gives you more of a sense of purpose for the property. It’s a place where memories can be created and a place to live a permanent life. You can paint the walls your favourite colour, improve the garden, freely have pets, or hang family photos without seeking permission. This sense of belonging and ownership can add to your overall satisfaction and help you to settle into a community or area.
Buying a house in New Zealand offers several advantages over renting. By paying towards your own mortgage, making a solid investment, and customising your property, you are creating a place to call home and investing in your future. As you consider home ownership, take the time to explore your options, and make an informed decision that aligns with your financial goals and lifestyle preferences.
Want to know the steps of buying a house? Read our blog about the guide on how to buy a house.