International students in Melbourne have started filling 2-bedroom apartments with six or more people because they don’t want a
house
for
such
a short stay.
This
trend is favourable for students since they don’t have to spend their savings on a long-term loan. While they pay their
rent
, though, they aren’t acquiring any assets. Renting (a) property has some advantages,
such
as avoiding paying for a mortgage and offering tenants more flexibility;
however
, it comes with some potential financial issues.
On the one hand, taking a flat or
house
lease comes with multiple benefits.
Firstly
, tenants can avoid bank loans and only have to pay
rent
to a landlord either weekly or monthly whereas
house
owners tend to acquire a bank loan for long term payment.
For example
, In Colombia many people prefer to
rent
a place due to the fact that financial entities charge high interests on loans.
Secondly
, it is becoming increasingly the number of people in some countries who are moving abroad seeking better job opportunities, for
this
people
rent
a
house
is a better deal because can relocate to any places with ease.
For example
, an IT engineer who lives in an undeveloped country and wants to work overseas could easily live on
rent
while the job opportunity comes up.
On the other hand
, living on
rent
presents some drawbacks.
To begin
with, In many countries, renting a
house
or a flat could be extremely expensive, especially in downtown areas.
Therefore
,
although
there are places available in the zone, the prices are not affordable for all people.
For instance
, the
rent
price of a flat in big cities
such
as Melbourne and Toronto represents almost 50% of a middle class salary person. In the
second
place, a property is an asset,
thus
someone who buys an apartment is building their future,
in contrast
, people who are living on
rent
are spending money without get anything in return.
To conclude, renting a property comes with some benefits, giving tenants an alternative to acquiring a
house
and a chance to relocate with ease.
However
, it
also
has some inconveniences related to their future finances.