Monday 29th August 2016

The perks of buying a home

The perks of buying a home

Sure, renting is handy because of its flexibility and more affordable price, but have you ever considered the amount of money you have pumped into your landlord’s pockets?

Let’s assume that you’re operating with the nation’s average weekly rent, which according to the Australian Bureau of Statistics is $305.

Twelve months of renting and you will have paid $15,860. Five years later that number leaps up to $79,300 – most likely going straight towards your landlord’s mortgage lender.

Here are some reasons why you should talk to us, find the right loan and use your money to buy a house.

Equity

Rent is a payment that goes to the homeowners in exchange for using their property as your home.

When you finish your term with your rental property you will walk away with nothing. Meanwhile, your landlord’s pockets will be jingling.

The repayments for home loans may be slightly more than rent, but you will benefit in the long run as it can be considered enforced saving. Each payment you make towards your mortgage will increase your equity, leaving you financially better off.

Renovate

Fancy doing some modifications to your home seeing so many success stories on TV?If you’ve bought it, you can put in a new kitchen, build a tree-house or put a swimming pool on your roof – with council consent of course.

The best part is, any value that is added to your home from the alterations is value added to your equity.

Stability

Owning a home is like spreading your wings – “independent” and “free” are two words to describe it. You can rest assured that there is no one coming to do inspections, raise your rent or kick you out.

Short of creeping out your neighbours and maybe even your family, you have complete free rein in your home.

Are you ready to buy a home?

Buying a home is certainly a large responsibility, and can signal to your friends and family that you’ve ‘made it’. Consider your finances. Have you got enough to lay down a deposit for a home loan and then still have some on the side for unexpected and living costs? Money Smart (a government initiative) recommends having at least 20 per cent of the purchase price.

The sooner you pay it off the better, as statistics from the ABS show the average weekly living costs for a mortgage-free homeowner is just $36. Now that is something to aspire to.