While thousands of Australians are madly saving deposits right now to buy their first piece of real estate, not everybody wants to own a home.
Almost 110,000 started mortgages between October 2014 and October 2015, according to the ABS. That’s more than 15% of all property purchasers in Australia today.
But the headlines often miss the point that not all tenants are desperate to climb the proverbial property ladder and plenty of Aussies rent by choice because they see benefits outweighing the perks.
Pro-renters say leasing their homes from someone else is, or was, better than putting their own names on title deeds, for a number of reasons.
1. You can live a cheaper, more footloose lifestyle
Ryan Ebert lives just 4km from Melbourne’s CBD.
“I choose to rent … for lifestyle reasons, cost savings and also the flexibility of not being tied down; these are all benefits of renting,” Ebert says.
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2. Renting can make investing affordable
By far the biggest advantage, Ebert says, is the fact he’s been able to afford to buy two low-cost investment properties while renting, and avoid all the extra ongoing costs of home ownership.
I choose to rent for lifestyle reasons, cost savings and the flexibility of not being tied down.
Renting means you can simultaneously be a tenant and a landlord.
“The biggest one, by choosing to rent, has been getting two investments … by the age of 25 and without having to sink everything into a high mortgage and commit for the next 20 years to paying off one place,” he says.
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3. Live in a fancier home than you can ever buy
Gold Coaster Vanessa* also rents by choice, admitting she accepts the reality she simply cannot afford to buy her own home.
“Yes I rent by choice. I’m a single female with no kids, only my pets, who also is self-employed,” she says.
Renting allows me to move according to my changing lifestyle.
“It’s near on impossible for me to save for a deposit let alone be granted a loan.
“So while my circumstances prevent me from buying… I’ve also decided that it is actually more beneficial for me to rent overall than to buy. Renting also allows me to move easily according to my changing lifestyle and financial circumstances.
“My rental home has four bedrooms and two bathrooms and is in Molendinar on the Gold Coast.
“I pay $500 per week including $400 electricity credit (and) it is pet friendly.”
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4. Renting makes it easier to move addresses
Lacey Filipich was a tenant for more than a decade because it better suits a changeable work life.
“I rented for 11 years on the basic premise that you can rent your lifestyle cheaper than you can own it,” says the Western Australia-based 30-something.
“It also made moving for work much easier. I’ve moved 18 times in 13 years. And I loved being able to delegate all responsibility for repairs to the agent. I still think renting is a fabulous way to go.”
Filipich and her husband recently bought their first family home because the couple knew they’d reside in one location for the medium-term.
“I consider buying a home to live in a luxury; it’s not something I’d recommend unless you’re financially stable,” she says.
I consider buying a home to live in a luxury.
“We did it because we want to stay in one spot for several years after all our moves and renting leaves you susceptible to being asked to leave if the owner wants to sell or move in.
“Also, we found a home going cheaper than usual in the area we love due to a deceased estate so although we’re still paying more than we would renting, it’s a good deal from our point of view.”
*Surname withheld for privacy reasons.
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This article was originally published on
31 Oct 2019 at 9:00am
but has been regularly updated to keep the information current.