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With housing prices remaining high despite the slow-down, home ownership may be beyond many Australians. A recent survey found that home ownership was not a priority for 1 in 3 Australians.

There’s an old saying that ‘rent money is dead money’. But is this true at current housing prices?

There are pros and cons to both options which include emotional as well as financial. This means that there isn’t a straight-forward answer. Let’s look at both the pros and cons of renting to help you decide which is best for you.


  1. Lack of Stability

Renting doesn’t provide the same stability as owning your own place. Most lease agreements are for a 12-month period which isn’t really a long time when you consider the cost and effort of moving. Having to pack up your whole life and find a new home, sometimes with no more than two months’ notice, can be stressful especially if you have kids as it may involve shifting schools and friends.

  1. Lack of Control

You want the place you live in to become home however renting comes a long list of rules and regulations regarding what you can and can’t do.

Likewise, if there’s something that needs repair or changed, the final decision is with the landlord.

  1. Where’s the Investment

Renting can be the more cost-effective option in the short term but in ten years’ time, there will be nothing to show for the thousands of dollars spent paying off someone else’s mortgage.


Financial and lifestyle objectives can see the upside of renting.

  1. Lifestyle

Renting allows greater flexibility to live where you want to live and not where you can afford to buy. For those who want to live close to the city, sometimes renting can be their best bet.

Not only can rental prices be considerably lower than the average mortgage repayment, but living close to the city can also mean substantial savings in terms of transport (and time!). And there’s more! If public transport is readily available, you may not need a car saving on depreciation, petrol, parking, tolls and registration.

There is increasing evidence showing the amount of young people choosing to buy a rental property in the area they can afford, but rather than sacrifice their lifestyle, they continue to rent in their preferred area.

  1. Flexibility with your Money

Buying a home, especially if it’s a first home, can mean handing over a significant amount of money for the deposit. If you rent, you keep the deposit and with rent often less than a mortgage repayment, you can use it to invest in other options such as shares, managed funds or Super.

  1. Budget Control

With rental, you know what to expect – what to pay each week and the bond.

Owning a home means there are a number of costs to consider like the mortgage and stamp duty upfront but there’s the ongoing costs such as council rates, body corporate fees, insurance, repairs and more. It all adds up.


Whether you’re looking at renting or buying, or you’re a homeowner wanting to explore your options, getting advice from a professional, qualified financial adviser can help you make the right decision to suit your specific financial and lifestyle objectives. We’ll not only help you with financial planning but can help you with your home loan.

The team at Growth Partners are accredited and highly experienced advisors; and with 13 locations around Perth and the South West, we’re not far away. Find out more about our  financial planning services. Understanding your financial position, we can also assist in getting the right loan for you.

Growth Partners