An Australian newspaper published an interesting article earlier this month titled “Renting vs. Buying—The Verdict.” In the article four real estate experts—each expert representing a different age group—were asked whether other members of their age group would be better off renting or buying a home. The experts’ answers were certainly interesting, and we’ll reprint parts of them here, starting with Bruce Brammall, a Generation X expert.
Part of Brammall’s take on the question can be read here:
“If you decide not to buy, you will rent until you die,” Brammall writes, only partially joking. He continues by suggesting that “like that bad dream (complete with Nightmare on Elm Street’s Freddy Krueger) that you can’t wake from, renting will haunt you in later life.” Taking a more serious tone, he explains that “Generation X is in the home-buying zone. It can be a scary decision, signing up for a loan that is many multiples of your salary. But buying has huge benefits. The major cost of putting a roof over your head will end one day. Over time, you will develop equity, from the property’s value rising and the loan being paid down. And putting your savings into an offset/redraw account is a tax-free return—the best kind. Mortgages are usually for twenty five or thirty years, but rising incomes means the average home loan is usually gone by year fifteen. From that point, there’s really only utilities, rates and some upkeep to pay.” Unsurprisingly, Brammall concludes his portion of the article by saying that “I’m a fan of buying. The equity you develop is the best form of wealth to have to then invest further to create real wealth, through the purchase of shares and property.”
To read the rest of Brammall’s take on the rent-or-buy dilemma, check out the rest of the article here.
If your a Gen Xer looking to buy in Chicago, enter your information into the box on your right and a rock star real estate agent will get in touch with you ASAP!