February 06, 2017
- You need a place to live. Owning your own home means that when you get old and retire, you’ll have somewhere to live rent-free. What’s a better price than free?
- You don’t get kicked out. Owning your own home means that you’re not at the whim of a landlord who might increase the rent, refuse to fix something or sell the property and need you to leave
- You’ll gain an asset. Owning your own home is often the first step toward building a property portfolio. You can leverage your asset by borrowing money at low rates to invest in other things such as shares, property or business
- It can give you options. Owning your home and building equity (paying it off) can give you flexibility. I always wondered where people came up with say $600,000 to buy a business, so I asked. I discovered that most people who are in a position to buy or build a business do so with equity in their homes. Some sell other assets which may be an investment property or shares but most borrow against the equity in their homes. This means they can access finance at a much lower rate than if they didn’t have anything to offer the lender as security.
- Appreciation. In both senses, the value increasing, and the ability to understand what it takes to get a home. Owning your own home gives you a chance to make money through an increase in property values. Although it’s not always guaranteed, if we always buy with the intention to keep the property long term, you may find yourself adding considerably to your net worth. In 2006 the median value of a house in Brisbane was $329,000, ten years later the median was $632,000.
- You can renovate your home. Owning your own home means you can change it to suit you. If you don’t like that purple feature wall, change it. You don’t even have to ask anyone else. Hmm, on second thoughts, maybe your partner likes it so it might be safe to ask them first. If you feel like putting a pool in, go for it. You might like to make it open plan living. Why not? It’s yours to do with as you wish
- Stability, predictability and freedom. Owning your own home means you’ve always got somewhere to stay. If you want to rent it out and travel for a few years, the rent can often cover the mortgage while you travel. You can estimate what your loan repayments will likely range between for the next 30 years. While your friends are taking out $1million home loans, you’ll be flying ahead on your much smaller loan with the view to clear it long before them. There won’t be any rent rises
So are you convinced yet that buying a home is a sensible thing to do?
Find out how you can do it by speaking with the team at Mortgage Choice in Fortitude Valley. We are there to take you every step of the way to becoming a home owner sooner!