There are so many good reasons to own your own home. Some are obvious but some are not so obvious. Here are three reasons that getting into your first home as soon as you can is a great idea. Note: Interested in our 100 tips to own your first home sooner? Follow us on Facebook or Instagram to be the first to know when this complete guide for First Home Owners is published (tip - it could save you tens of thousands of dollars!).
Pay yourself, not a landlord
Mortgage repayments can cost LESS than renting. Seriously. Here’s an example. The rental option: For a 4 bed 2 bath 2 car brand new home we are currently selling at $420,000 ($400,000 after your Airlisting cashback), the rental price is $390 - $410 per week. The purchase option: Say you had saved $20,000 deposit and you put it towards the same 4 bed 2 bath 2 car brand new home. You’ll borrow $380,000 and guess what your mortgage repayments are? Approximately $370 per week! (that’s on Principle and Interest repayments and an interest rate of 3% interest rate over 30 years).
Historically low interest rates AND a bottomed-out market
You’ve hit the perfect storm (in a good way). If you get into a mortgage now, you can lock away your interest rate at their historical lows. ALSO, if you buy now in Brisbane, Gold Coast, Melbourne or greater Sydney, you’re buying just after the bottom of the property cycle. So you can expect the best possible price and accelerated capital growth - the PERFECT perfect storm for the start of your real estate investment.
Buying well for your first home can set you up for a strong financial future
There are 2 things to know here. First, Australians who are property owners end up on average over 20 times better off financially than those who rent (1). And secondly, if you buy well and your property goes up in value, you can borrow against the equity. It is made ever easier to then secure a loan again if you maintain good serviceability (and rental payments coming in that exceed mortgage payments is great for this). So as long as you buy in a good area, at the right price, that could very easily enable you to buy again when the opportunity is right. While, this is a lot to think about for right now, what you should know for sure is that buying well now will mean a lot for you now and even more for you later.
In summary, working towards securing your first home soon is a great plan. It's a great plan for today and it's an undeniably exceptional plan for the long term.
If you're ready to look at getting into your first home soon, talk to one of our Property Consultants today. They can help you secure the very best house, townhouse, apartment or ideal block of land at wholesale prices and with complete transparency. Click here to get in touch.