More and more young people are pursuing the Australian dream by purchasing their first property. If you’re well on your way to choosing the home to invest in, you should have considered every other option you have and know for a fact that it’s the right step to take. Here are a couple of things to consider.
How buying is different than simply renting
Every home buying expert will tell you that buying is the way to go. And while it’s true that buying and renting are different in many crucial ways, there are also some advantages to renting over buying.
Here are just some of the considerations to examinebefore buying:
Buying means staying in a single location. If you choose to rent, it’s possible that you’re not signing a lease for longer than a year. This gives you the flexibility to move as you see fit. When you purchase a house, you should plan to stay in it for around three to five years, this way you can recoup the initial purchase costs. If the real estate market drops, it could take a little more for your home’s value to recover, which is why you need to stay awhile to avoid big losses when you sell.
Buying can mean less free time. As a homeowner, you’ll be required to improve and maintain your home than you need to when you’re renting. You can’t call the landlord when sink leaks, for instance, so you’ll need to do it all by yourself or hire someone to fix it for you. Also. Managing things like the heating filter and termite issue can pose a challenge if you’ve never encountered it before.
The buying cost includes more than the mortgage payment. It’s wrong to compare the cost of buying to renting simply by assessing the payment versus rental prices. Buying also includes additional costs, such as property taxes, insurance, as well as repairs and maintenance costs.
The benefits of buying a home
Here are a couple of benefits to buying your own home instead of renting.
The home is yours to personalise to your heart’s content. Rental agreements will keep your personal tastes and customisations in check – owning a home removes that restriction, allowing you to do virtually anything from tearing out a wall, changing bathroom tile, or getting a pet. You can also do home improvements to boost the home’s value for when you decide to sell in the future.
Increased home value benefits. Your home’s value will increase overtimeif you maintain it and that it’s in a growth area. After selling, any return on investment is al yours. As a renter, it will be your landlord’s.
Mortgage payment ends. One of the top advantages of purchasing a home is that compared to renting, you’ll someday get rid of the monthly mortgage repayment. Also, you can utilise your equity to purchase another house, and eventually pay that as well. And if you choose to invest early, the date you’ll be done will be done sooner.
The next step as you go forward with your home purchase is choosing the cheapest home loan offered by the top home loan providers. The rule of the thumb is to go with those with a good track record and those referred to you by friends or family. Don’t forget to research exhaustively before committing. Best of luck!