In comparison, renters only pay rent while they live in a leased apartment and the landlords take care of everything else.Homeownership for many families and individuals makes financial sense. There are several incentives for those looking to buy a home with the potential to capitalise on tax benefits, change mortgage rates and refinance, along with rises in equity value. Homeownership is not for everyone, however. This may be the product of the preference of a lifestyle or a certain stage of life in which one finds himself. The sum needed to be saved for the deposit is literally unachievable for many as property prices rise. Many who can afford the deposit are often disheartened for a long period of time by measuring high mortgage payments.Do you want to learn more? Visit MRK.
Young families and individuals find the condition rather unattractive, with many expected to devote substantial proportions of their weekly income to the maintenance of mortgage payments. Not only are mortgage repayments to be addressed, but a multitude of other fiscal obligations, such as taxes, insurance and maintenance costs, come with homes. As a result, for those in this phase of their lives, there is an increasing dependency on quality house rentals.Have a long history of homeownership, and within the group, these ambitions are still alive and high. The rising property prices, however, mean that many potential first-time buyers, as well as people and families who have or are already experiencing financial hardship, are turning to rental accommodation. The trend towards growing demand for home rentals is set to continue as economic conditions continue to lift house prices and at the same time, increase the burden of spending on a diminishing amount of disposable income.
In a recent report published by BRANZ and Scion Research, an increasing population’s potential housing sustainability would be heavily dependent on a stock of quality rental properties being readily available on the market. Ageing population composition, growing ethnic composition, declining marriage rate and delayed marriage (delayed family formation), decreasing fertility and delayed childbearing, increasing divorce rates, increasing single-parent households and single-parent households are developments in demographic factors that will add fuel to the demand for house rentals.