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Rent or own by choice or fate, decisions driven by people’s cliché or what else is the driver when renting? When choosing a rental what do young people prefer; the budget, location or comfort?


Rent or Own

Is the Housing Market in your Favour?


Rent or Own - Decision at some stage in life?

Klauster Properties Ltd - Renter’s Blog

Renter’s individual needs are unique, so are the housing preferences. Renting might be a lifestyle or budget decision, but still for many the housing market and the economy have not provided enough reasons to make long-term housing decisions. So renting has been and will be an escape route to settle temporarily by waiting what the future will bring.


For younger people, those who value flexibility the most do not seek rentals with sections to maintain. For them, e.g. Gen Y renters, apartments are appealing. It sounds logical. But still historical reasons (the Kiwi way of life owning a plot of land) are driving the housing market  despite the expanding gap between income and house price. Amazingly the dated housing stock and a notorious shortage of housing combined with immigration policies have not changed anything.


Renters’ situations have become even more complicated after changes to taxation rules against property investors in 2010. The housing crisis, which hit the Auckland market most, is still an ongoing battle field.  What is with you—did you find that rental you have been looking for?


Rent or own by choice or fate?


Often choice and fate are twins like marrying a dream girl and getting a wicked mother-in-law. When choosing a rental what is your preference; the budget, location or comfort? Well, often when demand and supply on rental housing are running apart, people have to take what is available, right?


With emotions run high and housing shortage in areas with income opportunities people  lose too much on high mortgages (see Homeowner’s Blog) and miss opportunities to save for a solid deposit by using a rental home wisely and strategically (see Rent to Own Dollar Comparison). Globally the numbers of lifestyle renters grow steadily.  That are people who are looking for lifestyle opportunities in cities and wanting to live close to work or amenities. Why would that trend be different in NZ?

Are Millenial people lifestyle renters?


The city lifestyle with good infrastructure, mobile high-speed coverage and career opportunities is certainly the attraction for younger generations. True, young people are better educated than their mums and dads had been and with an income from a professional job—they want it all like travelling, quality housing and entertainment. Well, can the NZ housing market deliver? The fate for many has been to stay with mum and dad or keep flatting for a while longer.



Tenant vs. Owner-occupier—Control and financial security


Financial security  has really little to do  with housing, but more with jobs and good income. That people want to live in their owned home has more to do with having control over a lifestyle that landlords seldom provide. The need for cumulating housing wealth for future reasons like retirement is for many Kiwis a traditional option. In countries with sufficient old pension support homeownership is less attractive. Ownership statistics show that clearly.


I rented for many years in countries with tenancy laws supporting landlords and tenants alike. That gives renters the option to rent for life. In those environments tenants can fit out their rental home in their own taste, bring their own kitchen, furniture, wardrobes, etc. In this way tenants have more control over their lifestyle.



The Cliche’ about renting


Housing is necessary for keeping things in balance like health, relationships, income and expenses. Housing is not just an expense  when choosing rent or own. The common cliche’ is that “a rental payment is money thrown away”.  Well, the public opinion supports loads of nonsense about renting and if interested—follow this blog.


You will realize whether the rental market is in your favor or not, you only can do something about it. If you are willing to pay a premium for renter’s freedom and you manage your financials as homeowners do, you will certainly be in a better position than people around you.


· Live within your means,

· Be interested and informed about something that might affect you,

· Be able to execute your financial plan


Enjoy your life, your home, your freedom.




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Renter’s Blog lead to a real person, IT professional, investor, landlord and business owner with interests in sharing experiences. Life is a dream with a deadline, happiness comes from making the right choices and having realistic expectations.


Confession: I have been a happy renter for more than 25 years before buying a family home and later becoming involved in property investments and developments.


I used to live in apartments or rental homes, worked in many different countries and experienced different housing standards and renting cultures. I would love to see a social and legal frame work around housing policies that supports renters and landlords alike.

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Is the Rental Home Market in your Favour?