Reasons to considering buying over renting

We’ve been hearing a lot in the media lately about housing affordability worsening and the preference of many to rent as opposed to buying property. 

Buying a home is a significant investment; for those used to renting it can sometimes be difficult to comprehend the financial outlay involved in making such a purchase.  Many people are uncertain about the direction of interest rates, and worry about landing themselves in an expensive mortgage.  Some would rather the ease of simply paying their weekly rental amount. 

This is completely understandable – we think most people have worried about their mortgage at one point or another.  However, the way we see it, mortgage payments are very similar to rental payments, with one difference. 

Rent lacks the predictability that a mortgage repayment represents.  If you opt for a fixed-rate mortgage, you can plan out your repayments in advance for quite a substantial period of time.  Rent on the other hand can change depending on the length of your lease arrangement and is affected by market conditions.  If for some reason you must leave your rented property, there is no guarantee that you will be able to find a similar place for the same price. 

Every mortgage repayment made is a regular contribution, and after a period of time you will own a substantial investment.  If you wish to do so, this investment can be liquidated, and when sold is often worth more than the sum of your repayments (including interest). 

When renting, on the other hand, you are making the same regular contributions, however you will never see the money again. 

Putting talk of money aside, there’s something quite satisfying about owning your own home.  You own your walls, can paint them any colour, hang anything on them, or even knock them down if that’s what you feel like doing.  Landlord inspections or maintaining maintenance standards will never be events that you have to deal with. 

Owning your own property is not for everyone, but can definitely be worth the effort and saving.  The way I see it, with rental payments in many cases equalling mortgage repayments, buying should be at least considered as a very real and financially sensible option.

Easing the strain on your home energy bills

I’m beginning to realise that a technologically enhanced lifestyle doesn’t necessarily benefit our electricity bills.  And the electricity price changes set by the Independent Pricing and Regulatory Tribunal which came into effect at the beginning of July are not going to help matters. 

Given that these changes will see the cost of electricity rise between seven to 13 per cent, it may be worth considering the little alterations that can be made on a day-to-day basis to help reduce the effect that such increases will have on your family’s budget. 

To begin with, the plasma television is the biggest energy consumer in the home.  I know of many households who have the television running much of the day, just to have something on in the background.  What they don’t realise is how much this can contribute to their energy bill. 

Try to get into the habit of turning on the TV only when you are actually watching it.  Also, physically switch the television off, rather than just switching it onto standby with the remote control.  These changes could contribute to substantial reductions in your monthly bill. 

Turning off your lights is another important energy reducing task.  According to Cnet Australia, the common household 60W light globe consumes $5.96 worth of electricity per month! If you consider all the light globes that exist in one house, this can add up to quite a significant expense.  By simply getting into the habit of turning lights off as you leave a room, and installing dimmer switches to turn them down at night-time, your electricity bills could benefit. 

Leaving the household computer on over long periods whilst you’re not using it (i.e. when you are at work or asleep), can also unnecessarily add to your bills.  You don’t have to turn it off; the simple act of activating the automatic sleep mode setting can save you quite a bit of money per year that I bet you didn’t even know you were spending. 

While these ideas are starting points, there are also many other easy ways to reduce your energy consumption.  These reductions don’t necessarily require huge sacrifice; they are often just different ways of thinking which could end up saving you a fair bit over a relatively small period of time. 

Less Water More Energy

Australians are using less water but more energy, according to a new report released by the Australian Bureau of Statistics.

The report shows that water used by agriculture has fallen by almost half in two years, with the biggest reductions occuring in NSW and Victoria, while the proporion of households using water saving deices has doubled between 1994 and 2007.

While water consumption fell, energy use rose. Australia's heavy reliance on fossil fuels, especially or power generation, has seen greenhouse gas emissions in the energy sector rise by almost one-half since 1990. However emissions per head of population fell by 12 per cent over the same period.

The Northen Territory and Western Australia lead other states in solar hot water use, but less than 10% of Australian homes were using solar hot water systems.

Australian's are also living in larger homes with fewer people, this is increasing greenhouse emissions from the electricity and gas used to build and run them.

Here in South Australia, along with Victoria have had the biggest increases in use of public transport.

Mawson Lakes in partnership with SA Water provided recycled water to its residents, as a sustainable and enviromental initiative, and an cost effective alternative to mains water for watering of gardens, reserves and household lavatory facilities.  

For any further information please come visit us in our office or call us on 8359 0799

Century 21 Golden Estates