Am I stupid to rent?

For years, buying a place to live has existed as the ultimate measure of financial security. But is homeownership still the bedrock of the Australian dream, or an outdated aspiration?

We’ve seen the headline before: rent money is dead money. It’s often met with the inferences, why would you pay off someone else’s mortgage? or, you won’t have an asset to show in the end. But on the other hand, we could ask another question: isn’t mortgage interest ‘dead money’ too?

In the buy vs rent debate, the truth is that neither option is right or wrong, smart or dumb. Like everything, the decision on how to live comes down to your needs, with both options attracting pros and cons. So before you’re led to swallow the anti-rent myths, take a look at the 3 largest perks we’ve listed below to dismantle negative stigma about renting.

Potential for savings.

Generally speaking, renting is cheaper than owning without the expense of interest or upkeep. And if you can channel the difference into the sharemarket, you’ll be ahead of the financial game – at least according to a report by the Reserve Bank of Australia. There’s a lot to be said about saving the difference in mortgage rates, insurance and maintenance by renting, and watching what you save grow in an investment. This amount could deliver that long-term financial security that is too often misconceived as unattainable for renters. And when market values decrease, property owners lose equity – renters don’t, and can still secure a competitive rate.

Maintenance is the responsibility of the landlord.

The price that comes with home ownership is the cost of wear and tear. In circumstances that are not tenant damage, as the tenant, you’re only required to log the issue with your agent or landlord (and won’t foot the bill in these instances). The little responsibility for home maintenance is a bonus for many time-poor renters.

Boundless lifestyle options.

Tenants have the freedom to live in areas they can’t afford to buy in! In addition to being able to up and move without the process of selling (and waiting each time), renting is a logical decision for many working individuals and families who require ongoing flexibility.

Need expert advice on renting or buying?

Contact a friendly member of the team today! Call Prudential Real Estate on (02) 4628 0033 or email us at