Klauster Properties Ltd - Tenant’s Blog

Rent vs Buy In New Zealand

 

Rent or Buy - I found so much housing journalism about rent vs buy that doesn’t seem to be relevant for somebody who is looking for a place to raise a family. People have to live somewhere as they have to eat. Can you stop eating until the food price is right? House affordability is similar, when your circumstances have changed. At the end of the day it doesn’t matter if you rent or own because you pay for either way. The difference might be the lifestyle in a rental and where you stand in 20 years time, when yours or your landlord’s mortgage will have been paid off.  Klauster’s blogs are with specific information about why renting and to consider pros and cons . For getting access to all articles visit the Blog Register. If you want to be notified for new article releases, please email us here.

Rent or Buy

That is the Key Question at Some Stage in Life

 

The question “Rent or Buy” hits often like a bolt out of blue simply because people’s circumstances change, triggered or pushed by the media and the reality is people have to live somewhere. Rushing into the housing market and emotional decisions about how to live are later often regretted.  This blog has been designed to help renters making educated decisions.

 

Firstly let me clarify where I am coming from. Before going into properties I worked in Information Technology in many countries for more than 25 years and lived in rented homes or luxury apartments. Now for more than 13 years I “rooted” and own “my paradise”, founded my own business, became a property investor, landlord and keen to assist people making good decisions on where to live, how to live and what pays off in years to come financially.

 

With that background I tell you upfront – properties are one of the most misunderstood vehicles I came across, because;

 

· People are emotional attached to their home.

· Renting or owning a home is lifestyle decision, when people can afford their dreams

· Pros-cons presentations mix often up different views people might have as renter, owner-occupier, or investor. Different views equal different priorities.

 

Being a renter or home owner is not the same regarding where to live, how to live and the mindset is different, too. Ask yourself the question — why do I rent? Is it because of

 

· Simplicity or not interested in ownership

· Flexibility and career

· Affordability or lifestyle reasons

 

 

Is renting really waste of money?

 

The short answer is NO, because the rent covers the housing costs. As home owner you pay for these housing costs too, they are called rates, insurance, maintenance etc and on top of it you pay for your saving fund, called principals on mortgage. More details you will find here when following the blog.

 

All I am saying is renting makes sense at some stage, home ownership is for you when looking for freedom to make choices and if you deal with career or uncertainties, you’ll possibly prefer to rent. But your needs change over time and when getting closer to retirement. I will show you examples from areas I am conversant with. Real figures to help you making good decisions. I will also touch few emotional aspects going through the medias like

 

· Why renting if you can afford to own?

· Renting — do you throw money away?

· Home ownership— is that wealth creation?

 

And more about home owner’s view and related risks.

 

Considerations for “normal “ people whether to rent or buy differ from investor’s view related to the property cycle, the economic clock, taxation and finance. For those specific aspects please visit my Investor’s and Homeowner’s Blog. If you have a specific question, please email.

 

Spend money wisely— where to live and how to live,

it’s your life.

Klauster