Owning your property is a feeling unlike owning anything else.
For many Australians, the decision to purchase a property or continue to rent a property may not be an easy decision and it’s not uncommon to feel hesitation. If you’re considering purchasing a property we’ve outlined some of the things you should consider to make sure it’s right for you.
The advantages of buying over renting:
- From the first day you own the property you start creating equity – by making repayments on your loan and by the property growing in value
- You are free to make alterations and moderations to your property, with the proper council or strata approval
- Eventually you will pay off your property and become debt free.
- Property can make an excellent investment if you choose to rent it out in the future
- Owning your property means you do not have to move out when your lease is up or your landlord sells the property.
The advantages of renting over buying:
- Rental rates can be lower than your mortgage repayments
- Renters are not required to pay for upgrades that are needed for the property
- Renters have the flexibility to move to other properties easily.
Things to consider if you’re thinking about purchasing property
- Do you have the deposit required to purchase a property or have a family member that could go guarantor for you?
- Do you qualify for any grants or concessions
- How much can you afford to spend?
- What type of property would you like to buy?
- Do you think you would ever use the property as an investment?
Why it’s worthwhile to speak to a mortgage broker
A mortgage broker is a great resource to speak to, even if you’ve just started thinking about purchasing a property. A mortgage broker can give you an accurate picture of not just how much you can afford to spend on a property but what your finances will look like after you buy. A mortgage broker will outline all the steps, costs and people involved in the buying process and make sure you have the confidence to make the right decision. If the time comes and you’re ready to start shopping around, a mortgage broker will organise a pre-approval for you and make sure you have the most competitive loan product that matches your personal circumstances and property goals.
