Right now, mortgage interest rates are at an all time low. They are forecast to stay low. Rents are at an all-time high and, with pressure on housing supply, are forecast to stay high. Marry these two things up and you have a sound platform to start your ‘why rent when you can buy’ conversation.
A long term investment in your future
Let’s take a look at the some of the reasons why it’s a good time to make the move from renting to home ownership. Due to budget constraints, renting a home can feel like a more attractive option in the short term, but owning has the benefit of building long-term equity. Something which is simply unavailable as a tenant. Think about new home ownership as a long-term investment in your future.
Fewer restrictions on borrowing
The main constraint when starting off, is getting the capital together for a deposit. Mortgage brokers, banks and other lending institutions are able to offer an easier lending ratio currently, with the Loan to Value Ratio restrictions lifted by the Reserve Bank of New Zealand. So you can borrow a higher percentage of the value of the house.
Less worry about lease contracts, bonds and fees
Knowing you are in charge of your own destiny feels good. Establishing a budget to manage your mortgage payments is part of that. Think of rent as money you’ll never get back. About building your landlord’s wealth and future, not your own. Not having to worry about lease contracts, terms, extra fees, bond payments, and other hidden costs associated with renting is another bonus. Paying off an asset you own is better than paying off someone else’s!
Closer community connection
Of course, financial considerations are key, but it’s more than just that. Wellbeing is closely linked to establishing yourself in a community. To a feeling of connection and security. Indeed, a sense of home, which by its very nature, renting is less likely to give. Certainly, home ownership brings stability in the sense that you know you won’t be kicked out of your house. Not being able to become attached to where you live, as you’re not sure when you’ll be moved on, is another negative feeling reported by some renters.
More control and more security
Lastly, it’s also about control. Renting means you have little or no control over the rent or indeed security of tenure, if the landlord decides to sell. That you won’t be impacted by the random events of someone else’s decisions, means more control and more security. With home ownership, your house is exactly that: your own.
There are many reasons why owning your own home is better than renting. Not only does it help you build your net worth and save on rental costs, but buying your own home empowers you, and the people in your life, to create lasting memories together.
So, the first question you have to ask, is why rent when you can buy? And if you’re planning to buy your first home soon, check out our blog on why it makes sense to buy new.
Longview Homes builds both custom and pre-designed homes of exacting quality, built to last. We have locally owned franchises around the country. It would be our pleasure to take on your building project.
Get in touch with our team or call 0800 100 945 to start your exciting new build journey today.