One of life's biggest questions: Rent or Buy?

THE great Australian dream has always been to own a house, pay it off and live debt-free in retirement. But in reality that may not be the case.

TO rent or to buy? It's one of the biggest questions in real estate and one most people have faced at some stage in their lives.

The great Australian dream has always been to own a house, pay it off and live debt-free in retirement.

But in reality that may not be the case.

Real Estate Institute of Queensland (REIQ) chief Antonia Mercorella said there plenty of pros and cons on both sides of the renting and buying coin.

She said there were pros and cons for both sides of the argument.

"If you currently rent near to the inner city, in a funky area with lots of entertainment and public transport around, you may find it difficult to buy in the same area," she said.

"Be prepared to move further out to achieve the dream of home ownership."

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Ms Mercorella said when you buy a property it is an asset which has the potential to grow in value and can put you in a good financial position for the future.

But it also comes with additional financial outlays such as rates, insurance, maintenance, repairs and any renovations - something those who rent properties don't have to worry about.

"The pros of renting include not having to shoulder the burden some of the costs associated with home ownership," she said.

"There is a level of flexibility around your tenancy that you do not have with home ownership.

"Also, often rental payments are less than mortgage payments, leaving you with more disposable income."

Ms Mercorella said choosing to rent often gave people greater financial freedom, but less security.

And remember, when you're renting you're essentially paying off someone else's mortgage.

"Renting can be a good option depending on the life stage you are at," she said.

"There is no right or wrong answer about the renting versus buying debate."

REIQ runs free home-buyer seminars that provide objective, valuable independent information about the home purchasing process.

For more information, visit http://www.reiq.com

- APN NEWSDESK.