Skip to content

The pros and cons of renting for life

The traditional Australian dream of owning a family home with a spacious backyard is evolving, as modern values and global influences lead many to choose the flexibility of renting and the freedom of a nomadic lifestyle over the stability of homeownership.

The image of a standalone family home with a spacious backyard for the kids to play and a barbecue area for weekend gatherings was once the status symbol of society. An indicator of success and stability for all who held the title (deed).

Has this dream now been retired to its resting place alongside the black and white televisions, typewriters, and telephones with cords that once lived inside these homes?

The Great Australian Dream – A Historical Perspective

The post-war era saw Australia rebuilding and reimagining its future.

Owning a home became more than just a need; it was a symbol. It influenced family dynamics, career trajectories, and even the layout of our cities. Suburbs sprawled, and the housing market boomed, fuelled by this collective aspiration.

The Modern Australian – A New Dream Emerges

As the world shrunk with globalisation, Australians were exposed to diverse lifestyles. Cities became melting pots of cultures, ideas, and aspirations.

The rise of remote work, the allure of freelancing and the gig economy, and the charm of being a digital nomad (#laptoplifestyle) made it less appealing for many to be tied with a mortgage to one place.

The value shifted from owning a patch of dirt to experiencing all that life and the world has to offer – be it a jazz bar down the lane, a pop-up art exhibit, or the freedom to pack up and travel on a whim.

As a result of this new trend, more and more individuals are now choosing freedom over stability, renting for life over buying a home, or investing rather than paying off a hefty mortgage.

This shift in mindset is not just a fleeting trend but a conscious lifestyle choice for many. But what drives this decision?

Pros of renting for life

  • Flexibility and mobility: One of the most significant advantages of renting is its flexibility. Without being tied down to a mortgage or a specific location, renters can easily move cities, neighbourhoods, or even countries. This mobility is especially beneficial for those whose careers require frequent relocations or those with a wanderlust spirit.
  • No maintenance hassles: Owning a home comes with its fair share of responsibilities, from fixing leaky roofs to mowing lawns. Renters, on the other hand, are often free from these burdens, with maintenance issues typically being the landlord’s responsibility.
  • Financial flexibility: Without the commitment of a hefty down payment and ongoing mortgage repayments, renters often find they have more disposable income. This can be channelled into investments, travel, or other life experiences.

Cons of renting for life

  • No asset accumulation: One of the most significant drawbacks of renting is the lack of asset accumulation. While homeowners build equity in their property over time, renters do not have this advantage. The money spent on rent does not contribute to an investment that can appreciate over time, and you are unable to benefit from your own home being Capital Gains Tax free.
  • Lack of stability: Renting can sometimes mean a lack of long-term stability. Leases can end, rents can increase (which we are currently experiencing on a massive scale), and there’s always the possibility of needing to move on short notice. This becomes particularly relevant in our later years when our ability and/or desire to be mobile and flexible has likely reduced.
  • Limited personalisation: Renters often have restrictions on how much they can personalise or modify their living space. This limitation can be a drawback for those who wish to make a space truly their own.


The decision to rent for life or pursue homeownership is deeply personal. It depends on individual priorities, financial situations, and life goals. While renting offers unparalleled flexibility and freedom, homeownership provides a sense of stability and long-term investment.

Ok, maybe it’s a little soon to be retiring ‘The Great Australian Dream’ just yet.

While this dream is still alive for many, it’s important to recognise that it has competitors – new dreams shaped by modern values, aspirations, and global influences.

Neither is superior; they’re simply different paths to the same goal – a life of fulfilment, joy, and contentment.

Aquinance Pty Ltd is a Corporate Authorised Representative of Lifespan Financial Planning Pty Ltd (AFSL 229892). The purpose of this website is to provide general information only and the contents of this website do not purport to provide personal financial advice. Lifespan strongly recommends that investors consult a financial adviser prior to making any investment decision. The contents of the Lifespan website does not take into account the investment objectives, financial situation or particular needs of any person and should not be used as the basis for making any financial or other decisions. The information is selective and may not be complete or accurate for your particular purposes and should not be construed as a recommendation to invest in any particular product, investment or security. The information provided on this website is given in good faith and is believed to be accurate at the time of compilation.