Most people know that at some point in their lives, they will become a homeowner. But how exactly do you know when that time is?
Personal finance writer, co-author of Age Proof and Senior Editor of The Balance, Jean Chatzky, told Business Insider Australia what to aim for before making the decision to buy.
Here are Chatzky’s top considerations.
Are you planning to stay put for a few years at least? It’s important to know that you’re intending to be in one spot for a period of time before making the move to buy. Of course, cost is a very big factor too.
Chatzky says there are other costs to consider, on top of mortgage repayments. Maintenance costs can take up 1 to 2% per annum. There is also taxes and insurance to consider. Be sure to add all these up before working out your budget.
The majority of markets in Australia are expected to appreciate over time, which does create a supplemental saving stream. As a guide, appreciation tends to be slightly above the inflation rate.
Chatzky says that if you are planning be in a location for a long period of time, and have the goal of building up supplemental savings, then paying off a home loan is a very good way to achieve that. This lump sum can then be invested into another property, if you decide to move.
The financial expert also points out that owning a home is different to renting. There comes a point in a person’s life when they want to lay roots and make a home their very own. If you feel you’re at this stage, it’s worth looking at the indicators above to see if you’re ready.
If you think you’re ready to secure a home loan, contact us to find out more about incentives for first homebuyers. We compare many different loans from trusted lenders, and pinpoint one that matches your unique goals and budget.
Contact us to get started. Head here to hear Chatzky’s full interview with Business Insider.
© 2019 Capita Finance Solutions Pty Ltd | ABN 36 166 229 321 | Australian Credit Licence 389087
