Buying your first home

Buying - the pros

• Could be a smart investment, depending on how much property prices rise over time.
• Paying off a mortgage is a good self-imposed saving plan.
• It's not considered 'money down the drain' like renting can be. What you pay towards your loan is equity in your home.
• Freedom to make changes, add a splash of paint, knock down a wall - basically whatever upgrade you make adds value to your home...and ultimately your hip pocket.

Buying - the cons

• There's a big up-front cost (the deposit) and several other fees that add up to a nice chunk of your savings.
• Some people may feel 'locked in' with a mortgage, having less flexibility to move around.

Renting - the pros

• Flexibility - change your mind about where you want to live? Think you might like to travel? If you're renting you can move around as much as you like - well at least, with a bit less to think about than if you were living in your own home.

Renting - the cons

• Lack of security - your rent could rise out of your affordability range.
• Unpredictable - your landlord could decide they wanted to sell or move in (and consequently, you're out).
• Restrictions - you have certain rules about what you can and can't do to alter the appearance of your home; sometimes even hanging a picture on the wall could be a no-no.