Tag Archives: buying your first home

3 reasons to ditch the rental for your own home

x_0_0_0_14100690_300Being 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.

Think about extra expenses when buying your first home

Add-up-extra-costs-when-buying-a-homeBuying your first home can be an exciting time, but rather than getting swept away with the thought of decorating the living room and what you’ll do with the garden, it’s important to be cost-aware.

After all, finding the perfect home loan is just the first step. There are various other expenses you’ll incur during the early stages of home ownership you might not even have thought about.

Here are just some of the costs you are likely to face when you make those initial steps onto the property ladder.

Stamp duty

While being a first-time buyer might work in your favour, one of the realities of buying a home in Australia is stamp duty.

You may be eligible for certain concessions in your state or territory, but make sure you have set enough money aside to cover the cost of stamp duty.

Legal fees

Buying a house involves all sorts of legal processes – all of which you’ll be expected to pay for.

Land searches and conveyancing are just two of the costs you will face. Doing a little research will help establish just how much you will be expected to pay.

Moving costs

Unless you’ve got a lot of friends and family with large vehicles at their disposal, it’s more than likely you’ll have to pay out for some kind of moving cost.

Depending on how far you’re relocating, this could run into hundreds of dollars, so factor it into your budget from the outset.

Insurance

Insuring your belongings is important when you move to a new place and this will come at a cost.

Some areas will be more expensive to secure insurance for than others, so do your research and find out how much you’re likely to be paying out.

Buying your first home: Features for families

x_0_0_0_14090864_300Buying your first home as a young or soon-to-be family is an exciting prospect, but how do you know what’s right for you?

Double or single storey?

A home that’s got smaller rooms but is spread across two storeys may prove to be a more desirable family home than a single-level property.

The top floor of double storey homes can be used as a space for children’s bedrooms and play areas, while living space is downstairs. This is ideal when you want to encourage young children to nod off, with the physical separation of a second level an ideal way to establish this.

By contrast, you might favour expansive open plan living, so a single level home could suit. In this case, it’s preferable to buy a property that has bedrooms and living space at opposite ends of the house.

Know your area’s amenities

There’s no point in buying a picture perfect family home if your children will end up having to travel long distances to early childcare, primary or high school.

Looking into the future at schooling options could save you heartache down the track. Buying a house with enough bedrooms and in an area close to quality schools means you’ll be less pressured into moving at a later date.

Run around space

It’s no secret that kids who have run around all day, whether at home or school, tend to settle better in the evening.

While it’s important to have ample interior space, an outdoor area for a spot of backyard cricket or children to run around in can be incredibly valuable.

A second bathroom

Think back to your flatting days – how annoying was it to have to share a single bathroom with four or five other people?

From singing in the shower to turning teeth brushing into a complicated exercise, kids aren’t always going to be timely.

Avoid the stress of trying to coordinate the family’s ablutions with a single bathroom and buy a property that has two bathrooms, or at least separates the toilet and shower.