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Tenants are flexible to quit a tenancy by giving 21 days notice. Does it means home ownership lacks of  flexibility to move for a better paid job and what is the price to pay for long-term commitments?

 

Renter’s Freedom

Flexibility—Advantage over Home Ownership?

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Rent or Own - Decision at some stage in life?

Klauster Properties Ltd - Renter’s Blog

When it comes to choosing a place to live renting is rated to be more flexible than home ownership. By default in a periodic tenancy tenants can move out by giving 21 days notice. This flexibility is the significant benefit for many who do not know what the future holds.

Statistics say, households move once every seven years in NZ. That number does not distinguish between renters and homeowners, but clearly homeowner don’t relocate so often than renters.

The interesting question is why do people see “flexibility of renting” in the context of relocating a household ?

The use of the term “flexibility” could stand  for different needs when it comes to housing and here is why;

Flexibility a key-term these days

 

Flexibility in terms of location offers increasingly better chances to find a good paid job, having a fulfilling life and excitements when choosing a city to live in. The problems in those locations are, housing is tough to find, life is more expensive and especially homes for sale are less affordable. That is why the benefits of owning a home somewhere else are eroding while the benefits of renting close to jobs and amenities are becoming more important especially for the younger population.

In a rental home you can pack up and leave immediately whenever it best suits your lifestyle. No paperwork by law, nor waiting to sell, just move your household. The freedom to stay or move is by most people considered as renter’s flexibility. Would you consider renting as escape route?

 

 

Shifting households is more important today than in the past

 

True, as illustrated above if you treat housing as secondary choice. People who consider housing for lifestyle reasons, to raise a family and are certain about the future prefer homeownership, even so by making sacrifices.

What you need today is different from tomorrow! We rent studio apartments mostly to young singles, two bedroom apartments to couples and our rental homes are preferred by families  having kids. This already explains when people mature, priorities in life are changing. From a certain age safe communities and life quality become important.  I can relate to it as  I rented for more than 25 years before settling permanently.

Because of falling confidence that house prices are not affordable in future for many the burning question is—rent or buy now, or wait until later? Well, I preferred to follow the market and worked for a higher income while renting is more cost effective than homeownership.  By investing in yourself and education you speed up cash-flow that helps to keep up with steady rises in prices. Over all “market prices” are limited to the amount that consumers are able to spend. If nobody can afford to buy, sellers have to drop expectations  for finding a buyer. So, if the limitation for your lifestyle is income, fix it firstly before rushing into something else.

Flexibility vs. control

 

Understood when renting you can easily reverse your decision and quit your tenancy like finding a new job when not making long-term commitments. Or say the opposite the landlord gives notice to end the tenancy (90 days or 42 days notice, see Tenancy Act). That is why the common opinion is that tenants do not have control over their future. True? Not really!

 

The tenancy agreement is a contract for both parties. If the tenant has long-term goals, and the landlord has the intention to keep the house long-term—so why not set up a long-term lease or sign a fixed tenancy for the desired time-frame?

Flexibility in the context of home ownership

 

Homeowner’s flexibility is about managing life and financial commitments when sitting in the driver’s seat of life such as investing in energy efficiency or installing central heating for lifestyle improvements, etc. 

 

Home ownership is like wanting to “root” somewhere like a tree. It creates strong communities defeating crime and anti-social behaviour. For more visit the Homeowner’s Blog.

 

 

 

Your Take-Away

The overwhelming message is — flexibility not really is a matter of rent or own rather than about succeeding in life. In fact, people have a spirit of independence and do not like to be told what not to do by somebody. Why then would they prefer to live under landlord’s command?  On the opposite ownership provides that type of flexibility (or freedom) to manage private space that renting never can.  Your life —your choice.

 

 

 

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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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