Renting a home can give you more flexibility and financial freedom than buying your own place. Not having to fork out a big down payment for a mortgage, or spend extra cash on the costs of owning your own home can mean you’re able to invest in other areas. Here are some of the advantages of renting rather than buying:

You don’t have to pay for repairs

Looking after a property can be very expensive, with the average annual cost of home maintenance and repairs around two to four per cent of the value of the home. This can be a double whammy for homeowners; if you don’t spend the cash on this sort of upkeep, you’re essentially devaluing your own property. If you’re renting, there’s no need to worry about maintenance costs. Not only does this free up extra cash to invest elsewhere and grow your wealth, it also means you know exactly how much rent you’ll need to pay each month, without being sprung by any nasty surprises that need a cash injection.

There are no big upfront costs

Although you have to pay a deposit and the first month’s rent upfront when you rent a property, you don’t need to part with a huge chunk of money like you do when you’re buying a property. This gives you the freedom to invest a potentially substantial lump sum in other areas, such as stocks or a high interest account. Because these sort of investments are often higher risk than a property purchase, they usually have higher returns.

You’ll save on insurances

It’s important to insure your belongings wherever you live, and NRMA Renters’ Contents Insurance can help protect the items the items you love. It protects your belongings if they’re stolen, damaged or destroyed, giving you peace of mind that your stuff is safe. Because renters don’t need to insure the actual building they live in – that’s down to the landlord – it can dramatically reduce insurance costs. This can add up to a saving of around $1000 a year, which can be used to grow your wealth in another way.

You have the freedom to make financially astute decisions

If you’re not tied to a property that you own, you have the freedom to move locations – which can make it easy to move homes for a significant career move or payrise. Being able to do this can dramatically impact your long-term wealth, allowing you to take opportunities when they arise.

You have more flexibility in tough times

When times are tough, owning a house can be hard work. If property prices fall and you need to sell, you run the risk of losing a lot of money. Renters have the option to move to a cheaper home, without the stress of having to sell assets, resulting in peace of mind.

Renting your home? Protect your belongings with NRMA Renters’ Contents Insurance.