May 15, 2017
At Mortgage Choice in Kingsley we like to keep you informed, and we like to make that information as easy as possible for you to understand and access. With that in mind, we have created Tim Kerin on the Couch.
Recently, a reader of our Points of Interest Newsletter said that they’d like to know Tim’s thoughts on whether they should buy the house they want to be in 15 years from now, or should they buy a cheaper and smaller house now and upgrade later?
Tim thought that this would be a great topic to discuss while on the Couch.
One example of this question we see a lot is a single person or a couple without kids, buying their first home, unsure whether to buy something they'll be able to raise a family in down the track, or whether to upgrade later to a house that's appropriate when the time comes.
This can be a really tricky question to answer. There are quite a few complicated variables to consider, and it involves projecting into the future and trying to take your best educated guess about how your life will pan out. Nobody has a crystal ball, so it's not a question we have a strong answer to, one way or the other.
While it's a very personal decision, and one not to take lightly, we can help by highlighting some of the things you need to consider:
- What are your priorities for the future - do you want to end up with one nice home and no debt as soon as possible, or are you more interested in developing a portfolio of properties over time?
- It costs money to sell a house, and it costs money to buy a house. The more you turn over property, the more you'll spend in fees.
- If you think you might like to raise a family with a partner later, do you both want to be working after the kids are born?
- The more you borrow, the slower you can pay it back.
- The less you buy for, the less the capital growth you have.
- If you outgrow your home, you don't have to sell it. You can always rent it out.
As you can see, there is a lot to contemplate. Part of the service we offer at Mortgage Choice in Kingsley is to help you crunch the numbers for your individual situation, and help you think it through and make the right decision. We don't even charge you for our service. It's just part of what we do to help our customers build the life they want.
Call the Team on 9309 4780 to talk through your future plans.
Need to catch up on other Episodes of Tim Kerin on the Couch?
Episode 1 - May Market Update
Episode 3 - First Home Owner Boost
Episode 4 - Salary Sacrificing for First Home deposit
Episode 5 - Fortnightly vs Monthly Repayments
Here are some of our other blogs that you may be interested in checking out:
- Buy where you can afford, rent where you want to live...
- What is Loan to Value Ratio (LVR)?
- First Home Owner Grant changes - how do they affect me?
- I've got 10% deposit - that's enough, right?
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