Being a tenant is a reality for most Australians at some point or another in their lives. From the early days of picking flatmates to settling down and finding the perfect apartment or home to rent, you may be a tenant for some time.
However, the time often comes when you wonder whether home ownership is a better option. Sure, you’ll need to take responsibility for regular maintenance and repairs, plus you’ll need to keep on top of your mortgage repayments. That said, the freedom that comes with owning your own home and building up equity in this significant asset can be rewarding.
Buying a home is not a decision to make lightly, so consider all your options carefully and be sure to take a careful analysis of your finances. Here are three reasons why it might be time to ditch the rental.
Use the First Home Owner Grant
Australia’s First Home Owner Grant scheme helps individuals purchase their first property.
It’s a financial incentive that helps mitigate the impact of GST on home ownership, by providing a one-off grant to those who meet the eligibility criteria, explains the federal government.
The amount provided varies from state to state, so have a chat with your local real estate agent or lender about the options available to you.
Benefit from capital growth
You might adore your current suburb, but there’s no harm in investigating nearby suburbs if you’re thinking about buying.
That’s because capital growth projections vary from suburb to suburb, city to city and state to state.
If an area has large-scale infrastructure projects in the pipeline and has experienced favourable capital growth in recent months, it could be a good idea to buy. You could benefit from future capital growth, allowing you to tap into your equity in future years to renovate, upgrade or even buy an investment property. If you’re a tenant, you don’t reap the benefits of capital growth.
Create your ideal home
Sure, you can decorate a rental property with furniture, rugs and colourful vases.
However, painting the walls, renovating the kitchen and sometimes even hanging artwork is a no-no if you’re a tenant rather than a homeowner.
If you’ve got a particular idea about the design aesthetic for your home or are a keen on a spot of DIY, you’ll have a lot more freedom to decorate your own house as you please, compared to living in a rental.