Rent or purchase your home?

However some choose to rent until the time is right to buy.  When you consider the current challenges being faced by renters the right time to buy might be now.

Over the past couple of years most renters have had an increase in their rent. Some of these increases have been as much as 20 per cent.

It seems that more and more people are looking for a home or unit to rent. For the better rental homes or units available, inspections are drawing high numbers. It would seem that there is currently a rental property problem.

Basically, this is a great example of the law of supply and demand.  That is, there are too many renters and not enough rental properties.

What are the options for renters?

Getting a head start on others will help secure a rental property.  This means preparing how you go about finding a property.  

Potential suggestions for rental property hunters:

• Start early in the day
• Plan how you will travel from one property inspection to another
• Avoid the rush periods – look during the week instead of the weekend
• Register your interest with a real estate and develop   relationships with individual agents

What else is there?

Once a place is found, how do you ensure stability?  A fixed term lease for an extended period of time will help with this.

Look for a 12 month lease as opposed to a standard shorter term lease.  The benefit here is that both parties are clear on the rental amount for the next year.

For the renter, there will be no surprises in the rent going up all of a sudden (especially where the default is to go month-to-month after the initial term has been served).

A longer term lease may not be the a good option for everyone, one of the benefits of renting is having the flexibility to move around and not stay in one place for any length of time. 

Another way to ensure stability, amongst other things, is make an effort to be a good tenant.  Keep in regular contact with the real estate agent and/or the landlord and look after the property. 

It is not uncommon for landlords to drive by their investment property from time to time to check on its upkeep.

Landlords do not want to worry about their investment property and the people living in it, a good tenant is worth more than a few dollars and cents for some landlords.    

Alternatively, you may like to take the plunge and purchase a property

If renting is a temporary arrangement until deciding when to buy, consider taking the leap and make that purchase sooner rather than later. There is no time like the present.

While looking around for rental properties, take a look at properties that are for sale in the same area or same neighbourhood.  You may be surprised at what you find.

Weigh-up the pros and cons with renting with the pros and cons of owning.  The rent that you are willing to pay may not be too much different to the mortgage repayment amount.    

If you need any advice or would like a ‘devil’s advocate’ then please contact us. We would be pleased to help.