{"id":1854,"date":"2024-10-01T00:56:36","date_gmt":"2024-10-01T00:56:36","guid":{"rendered":"https:\/\/mortgageatoz.co.nz\/staging\/?p=1854"},"modified":"2024-10-11T12:03:44","modified_gmt":"2024-10-11T12:03:44","slug":"renting-is-cheaper-than-a-mortgage-is-it-even-worth-buying-a-home","status":"publish","type":"post","link":"https:\/\/mortgageatoz.co.nz\/staging\/renting-is-cheaper-than-a-mortgage-is-it-even-worth-buying-a-home\/","title":{"rendered":"Renting is Cheaper Than a Mortgage, Is It Even Worth Buying a Home?"},"content":{"rendered":"\n
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Nobody said buying a home and paying off a mortgage was easy. If it was, everyone would be doing it right? <\/p>\n\n\n\n

In the short term your mortgage repayments, plus rates and insurance will most likely be significantly more expensive than your current rent and put a strain on your budget. <\/p>\n\n\n\n

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<\/span>So the question is, can you handle the short term pain to experience the long term gain?<\/strong><\/em><\/span><\/h3>\n\n\n\n
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Let\u2019s dig a little deeper. <\/p>\n\n\n\n

There is a thing called inflation, which is prices increasing over time. So what does inflation do to the value of money? It decreases it right, because you can buy less with the same amount. <\/p>\n\n\n\n

So what does inflation do to the value of your debt? <\/em><\/p>\n\n\n\n

Yes, it decreases that also. <\/p>\n\n\n\n

The cost of groceries will go up over the years, the same with petrol, rent and many other everyday items. Your pay should hopefully increase over time with inflation also. <\/p>\n\n\n\n

If however, you don\u2019t increase your principal balance and interest rates stay the same, your mortgage repayments don\u2019t increase. <\/p>\n\n\n\n

Imagine if you purchased a 3 bedroom house 10 years ago for $350,000? <\/p>\n\n\n\n

Your mortgage repayments of $400 a week would have seemed high back then compared to renting, but wouldn\u2019t you prefer to be paying a $400 a week mortgage now rather than renting for $550?<\/p>\n\n\n\n

If you wait for another ten years, that $ 400-a-week mortgage is going to seem even cheaper again compared to the average rent.<\/p>\n\n\n\n

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<\/span>There are other lifestyle factors to consider also. <\/strong><\/em><\/span><\/h3>\n\n\n\n
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A home of your own is exactly that, your home. There\u2019s no landlords telling you whether or not you can get a cat or a dog. <\/p>\n\n\n\n

Yes you can paint that room that horrible colour only you like. <\/p>\n\n\n\n

No you don\u2019t have to put up with that orange vinyl from the 70s forever. <\/p>\n\n\n\n

Then think of the stability it offers you and your family. You don\u2019t need to worry about moving and your kids changing schools just because the landlord wants to sell or let their family members move in.<\/p>\n\n\n\n

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So what are you going to do? <\/strong><\/em><\/p>\n\n\n\n

Are you going to keep thinking a mortgage is more expensive than renting?<\/strong><\/em> <\/p>\n\n\n\n

Or are you going to bite the bullet and get a mortgage now and endure the short term pain, then ride the wave of inflation and start creating wealth for yourself?<\/strong><\/em><\/p>\n\n\n\n

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