Deciding to rent before you buy a property can be a strategic and beneficial step towards securing your home, whether owner-occupied or an investment. With the dynamic real estate market, making the most of your renting experience is a savvy way to gain valuable insights about a suburb, future infrastructure, and the neighbourhood. You’ll be well-informed overall.
According to Jaime Pratt, Head of PM at VPM, one of the key advantages of renting is the flexibility it offers.
“Without the long-term commitment of a mortgage, you have the freedom to explore different surroundings and living arrangements,” she says. “Take the opportunity to experience firsthand the nearby amenities and get a gist of the local community vibe and overall lifestyle of various areas.”
Renting allows you to fine-tune your preferences, work out what you’re willing to compromise and what you’re willing to spend, and identify the perfect location that aligns either with your lifestyle and plans or those of future tenants.
Financially, renting also gives you the breathing space to save for any deposit you need for a future home. Jaime suggests taking advantage of this time to build a solid financial foundation.
“By allocating a portion of your income towards your savings, you’ll be better positioned to secure a more favourable mortgage when the time comes to transition from renting to buying,” she says.
You can also use this time to improve your credit score, a crucial element to obtaining favourable loan terms.
Renting also allows you to assess your long-term housing needs. Living in different styles of homes with differing floorplans gives you a better idea of the space, layout, and features essential to enrich your lifestyle.
Jaime recommends being smart with your time and using it to refine your property wish list based on practical experience.
“You might find that a larger kitchen is a must for comfortable living, or you feel the convenience of a dedicated home office space is appealing. These insights will guide your search when you’re ready to invest in a property.”
When renting, staying well-informed about the property market in the area you think you want to buy in is also wise. Attend open houses, follow market trends, and engage with local real estate professionals. Being proactive will give you a realistic understanding of property values, potential growth areas, and the best times to enter the market.
“Knowledge is a powerful tool, and being well-informed positions you to make confident decisions when the time is right,” Jaime advises.
Without a doubt, renting before you buy is a strategy that offers flexibility, financial advantages, and the opportunity to refine your property preferences. Use this time wisely to explore neighbourhoods, save for a deposit, and gain insights into your long-term housing needs and financial goals.
Touch base with our team of experts who can help you navigate the road from renting to homeownership at any time.