Stop Paying Someone Else’s Rent

Right now is one of the best times to be a homeowner!

Interest rates are still at record lows with most lenders offering home loans with interest rates below 4% p.a. There’s also a number of different incentives for first home buyers (depending on where you live) which could go towards those “hidden fees” that all add up such as building and pest inspection, conveyancing and legal and loan application fees to name a few. When purchasing a property around $500,000 you can expect to pay anywhere up to $20,000 on top of this.  Check out the State Revenue Office Victoria website for more information.

While there are definitely some advantages to renting, in the long term you’re really just paying off your landlords’ mortgage and there are no incentives offered either.

Being a homeowner has some great benefits for instance, you’ll be able to renovate to your hearts (and wallets) delight! Also, you won’t have to move because your landlord has decided to sell the house or increase the rent.

But here’s the best thing … your home will increase in value! That’s right. As time goes on the equity in your home will increase meaning you can utilize this to buy an investment property, renovate and upsize.

Here’s a few tips on how to land your dream home;

Save, save, save! Make sure you have 20% deposit.
If you don’t then you will be paying thousands in lenders mortgage insurance. Persevere. Do you really need that new iPhone? Do you need to eat out 4 times a week? Can your car last a bit longer?

Finding the right property
Do you know where you want to live? That’s just as important as finding the right home. Drive around, check out different neighbourhoods and if you find something you absolutely love don’t be afraid to approach the home owners direct and see if they’re willing to sell. You’ll never know until you ask.

Stick within your budget
Everyone loves an architecturally designed home that’s had professional interior decorating and a garden that rivals the local botanical gardens. If you can afford it – great! If you can’t, then stick with what you can afford making sure to factor in any future changes that may be around the corner (living off one salary because there’s a new addition to the family?). As a guide, aim to borrow less than what a financial institution will lend you.

Understand what you’re signing
Find yourself a skilled conveyancer to help you manage the legal minefield that can come with purchasing a property.

Do your homework on what incentives are available for your circumstances.
Are you eligible for the first home owners grant? For information on all Australian States and Territories check the firsthome.gov.au website.

 

At Find Your Mortgage we have all the resources you need to make an informed decision plus, we offer a free credit report and a free financial assessment without listing anything on your credit file. Give us a call today on 1300 469 667 or visit findyourmortgage.com.au, and find out how we can help you with property financing.

 

 

 

Disclaimer: Content is not intended to imply any recommendation about any financial product(s) or to constitute tax advice. If you need financial or tax advice you should consult a licensed financial or tax adviser. The information in the article is believed to be reliable at the time of distribution, but neither Bird and Young nor its accredited brokers warrant its completeness or accuracy. For information about whether a non-bank loan may be suitable for you, call us on 1300 469 667