- Posted 31 Dec
- 0 Comments
If you’re about to buy your first home, you’re embarking on a journey that will ultimately yield great rewards, but the process can be difficult to navigate. It takes s a lot of time and energy, but in the end, it’s worth it to have a place to call your own.
You’re going to take out a mortgage, which can seem stressful, but the positives do outweigh the negatives in the end, provided you’ve done your research and chosen the right lender.
We’ve outlined five main benefits of owning your own home for your below.
Simply put, if you own your home, you can have financial security for a long time to come. Unlike renting, where you always have to renegotiate when your lease is up, or where you may face the possibility of being forced to move if the landlord should decide to sell your rental; when you own, you have a roof over your head for the foreseeable future.
There’s a shortage of rental housing in Australia, and if you own, you have a place for as long as you want it.
2. Decorate as you like
When you own your home, you can do whatever you like in terms of decorating your house.
Want to paint the kitchen red, or add a conversation pit in the living room? Go for it. As a homeowner, you can do what you like and you don’t have to worry about what your landlord is going to think!
When you buy, you’re the king of your castle and you can renovate and decorate as you please (within Council guidelines, of course).
3. Grow your money
When you buy a home, your payments might seem like they are higher than when you are renting. It’s true, you will be paying more upfront, but in the end, owning a home is one of the best ways to grow your financial security and investment portfolio.
Studies have shown that in Australia, homeowners are almost 4 times better off financially than renters. Why? Well real estate grows faster than inflation. Over time, you will come out ahead financially – you just need to hang on to the property long enough to realise these returns.
Equity is the difference between what you owe on your mortgage and the actual value of your property. This is the most important element in making money from your real estate investment. Equity is a powerful financial asset. You can use your equity to buy an investment property, or finance a business.
5. You’ll pay lower taxes
As a homeowner, you’ll be able to take advantage of different tax benefits, depending on where your home is located. Things like depreciation and maintenance costs can be used to reduce that tax you pay back each year. Check with the Australian Tax Office or your mortgage broker for specific details as they apply to your situation.
These are just five reasons to buy a home versus renting. There are many more, but these five should be enough to push you in the direction of finding that mortgage if you can afford it. Renting is not terrible, but you’ll be much better off in the long run if you can become a homeowner.
Need help securing the right home finance option for you? Talk to our team of home loan experts today to discuss your next steps in owning your own home.