It is an age-old question of should I rent or should I buy? With property prices on the increase and the dream of owning your own home seeming at times an impossible dream, many young professionals are choosing to rent instead of buy.

So, what are some of the considerations when weighing up the options?

Cost

Always one of the most important factors to discuss and to start the conversation with is cost.

It is essential to have an idea of your financial health now and into the future when you are weighing up if you should buy property or not.

Are you on a single or double income, what other debts do you have if any and will you be planning to start a family in the future? These are all important questions to ask.

Mapping out what your financial situation looks like now and into the future and what you can comfortably afford is smart planning when deciding to buy a property.

Location

You might like to be near the city, or the beach or your work. But the area you are renting in might not be a place that you can afford to buy in right now, and that’s ok.

If lifestyle and location are non-negotiable for you, then renting in the area you want to live for the time being might be a good short-term plan.

Alternatively, you may also choose to buy an investment property in another area and continue to rent where you want to live.

Renting also allows flexibility in where you live, and being able to change locations more frequently with changes in jobs or what city or country you’d like to live in.

Overheads vs Security

If you own your own home, you will be responsible for any repairs, maintenance, rates and taxes that apply to your property. If you rent, most of these types of costs are taken care of by your landlord.

The trade-off on paying just rental payment is on security. Your landlord could potentially not renew your lease and could increase your rental payments to something that may not be manageable.

You will also be restricted in not being able to make a home truly yours by making modifications.

Owning Vs renting can depend on your financial and lifestyle goals. When trying to weigh up the pros and cons look at how you want to live your life in the next 5 – 10 years.

Are you willing to make sacrifices on location or budget? Short term pain can often lead to long term gain, but it does depend on your life goals and needs to be the right fit for you.