There’s only one person who knows if you’re ready to buy a home and stop renting. You. Does any of this sound familiar?
- You’re sick of saving for someone else’s retirement fund
Every week or calendar month, you’re putting aside hundreds of dollars, maybe even up into the thousands, just to fill someone else’s bank account with money.“But Andrew!” I hear you say, “If I buy my own home, I still have to pay for a whole load of other things like council fees. That’s money I could save for my next trip to Thailand!”
Yes, you could stay in your rental home and save for your next holiday. Send me a postcard. But here’s the thing about the cost of home owning maintenance…it’s like anything else you own. The more you take care of it – like you do when you get your car serviced, or get an expensive coat dry cleaned – you’re adding value to it. When you spend money ensuring your house is in tip-top condition, the more likely you’ll be able to sell at a higher price when and if you go down that track.
- You have a hunch that landlord Mr Jones might kick you out because his son needs a place to live
When you buy a home, you can stay as long as you like. No prim and proper real estate agents popping in to make sure you’ve cleaned your fingerprints off the walls, and kick you out with all but a month’s notice.Of course, when you rent, you have more flexibility to move around. But if flexibility is a concern, and you’d prefer to stay living closer to the city but can’t afford to buy, then purchasing an investment property is a great option. You’d even be able to earn an income from your rent, and claim some home owning costs on tax. Winning!
- You’re sick of all the dog owners in your neighbourhood flaunting their furry pride and joy
If you had your own place, you’d finally be able to buy that puppy or kitten! You wouldn’t have to worry about telling your real estate agent that your friend loaned you their pet. For a really long time. - You’re desperate to put your DIY skills to practice
All those hours spent watching The Block go to waste if you can’t even pick up a paintbrush. When you buy a home, you’re free to create that feature wall, rip up that ugly carpet, and finally create the haven of your Pinterest dreams. - You fear there might be a murder
No more cleaning rosters. No more nagging the house mates about cleaning rosters. No more ripping up said cleaning rosters and storming to your room muttering, “Next time, I’ll just dump all the dirty dishes in YOUR ROOM.”Oh, and you can hog the bathroom for as long as you like. Blissful.
- You’re the only one of your friends that still lives at home
Here’s the truth: it’s time. Time for freedom. Time for independence. Time to start making your own lunch. Living at home is a great way to save money for buying a home of your own, but eventually, you’ll need to leave the family home and become an official Grown Up. Trust me, you’ll respect yourself more for it. - You’re not sure if it’s cheaper to rent or buy
Fun fact: Sydney’s rental prices experienced their biggest jump in 5 years this July. That’s a leap of 3.9% to $530 a week for a house, and $500 for an apartment, according to the Domain Group Rental Market Report.Another fun fact: Although house prices are always on the rise, Sydney’s growth is slowing. According to the September Residential Market Report from Valuation Company Propell, Sydney’s house prices will go up 5% this year, compared to 18.6% last year.
- You’ve got a handle on responsible saving and spending…finally
You’ve paid off your credit cards, and your HECS or FEE HELP debt isn’t as scary as it used to be. You’ve been looking at potential mortgages, and think you might have even found The One. Yes, you think you’re finally ready to take on the responsibility of a mortgage! Not quite there yet?
Start here. I’ve got some great tips on how to save for that first home loan deposit. - You want to start a family
If you’re partnered up and both of you see mini me’s in your future, having your own home will provide that stability that a young family needs. Moving houses – as is more common when renting – is made far more stressful with young children. Owning your own home will take the stress of frequent relocations out of the equation. - You want a long-term investment, not a short-term strategy
Most importantly, owning your own property is one of the best ways to watch your assets appreciate in value. Unlike cars, shoes, clothes and phones, property generally grows in value year-on-year. Of course, there’s always exceptions to this rule, and the market does fluctuate. And although Sydney’s property prices are slowing in growth, it still ranks in the top 10 amongst world’s most liveable cities. In my opinion, it’s looking to be a great place to live and own a home for years to come.
As you can see, there are many arguments for and against buying vs. renting. What it comes down to is your personal circumstances. Would you enjoy the extra freedom? What about having the space to grow your family? The best place to start is to educate yourself. Know what you can afford, compare lenders and home loans, and seek out advice from friends and professionals.
Buying a home can be the most exciting experience of your life, but also the most nerve-wracking. But when you have the guidance of a genuine, friendly and knowledgeable professional, it makes the whole task a lot more easier.
The team at Mortgage Guy would love to help you. Why not get in touch? We’re based right here in Sydney, and we offer free initial phone consultations. Get in contact today for your complimentary call.