In Australia, the renting options you have falls under two categories. The first is a straight rent arrangement and the second is a rent to own scheme. You will discover that the renting of properties has its own unique advantages over a straight buy-out. The advantages of rental options have been listed below –
- Financial flexibility– This is the first advantage you will receive when you decide to go in for renting options. Rents mean that you are spending smaller capital. The smaller the rent amount would entail you saving a lot more cash over the high mortgage payments which you would need to worry about every month.
- Low costs of maintenance– The next advantage you would receive is the lower costs of maintenance. Here you have a fixed monthly payment that is small. Repair issues would be less burdensome. The lessor will take care of them for you.
- Personal/professional flexibility– The next advantage you receive is personal/professional flexibility. There can be changes in the circumstances like a new career or if your luck is bad, you may lose your job. When you are on a rental, you will never be locked in the situation where you have to pay payments when you are not able to do so.
- No-market risk– This is the next advantage you would receive. When you are buying a property you would have to dish out a large volume of capital both in an initial deposit and monthly payments. Here you are taking the risks of expectation where the value of appreciation for the property would be higher than the amount you had paid for.
- Insurance and tax benefits– Rental payments are expenses and they are deductible from the gross income. The insurance on the property you take on rent is paid by the lessor and this means you have reduced expenses on your part.
- Rental arrangement – This is an extra bonus that you receive in any rental arrangement. There are some perks you get when you move in. For instance an example would be the monthly free perk that most lessors in Australia give you when you take their property on rent. There are also arrangements where the rental that you pay every month would include the payments for utilities like trash collection, water and cable connections. This in turn saves you the troubles of not going in for the monthly payments yourself.
- Move out when you please – In case, you do not like the place due to any reason, the best advantage so far is that you can move out any time you please. If you do not like the neighbours, all you have to do is pack your bags and leave.
The rent to own option (this is the second type) implies that the buyer gets into an arrangement where he rents the premises now and would be given the first option to buy the property in due course of time. The scheme entails some procedures between the buyer and the seller. There is an agreement with certain terms and conditions. When both parties mutually consent this agreement is binding and has legal effect.