Australia has become a nation of homeowners. More and more people choosing to purchase a home over rental properties to realize the Australian dream of having a better life through home-ownership.
Owning your own home provides both financial and personal benefits. Being a homeowner means you can change the property to your preferences and have your personal space to call your own while earning equity at the same time.
Here are a couple of reasons why you should own your home instead of continuing to rent one.
Owning a home can be the cheaper option.
Renter’s markets aren’t common, which is why there are many available units per renter that drive rent costs down. It is especially true if you choose to live in the suburbs. Try totalling all rent costs and fees, then compare this amount to the total mortgage payment on an equivalent property. This way you can assess whether buying or renting is more affordable in your area.
A property’s value generally appreciates.
Owning real estate is a good option if you’re looking to accumulate wealth. This is through using the principle of leverage. You don’t only gain many on your home’s equity, but also through the bank’s money.
As long as the cost of owning your own home isn’t too high, you will earn some money by the time you sell your house. With renting, you get nothing back from your investment regardless of the time spent living in one place.
You reward yourself for home improvements.
It’s not necessary to wait for your home to appreciate to start making the property worth more money. Another benefit of home ownership is the ability to invest in upgrades and updates that will increase your home’s value.
Small things like painting walls and landscaping can add value to the home. Aside from living in a nicer place, you’ll have the potential to earn more money if you decide to sell.
Earn a living through property ownership.
If you can afford to purchase a second home or have a primary house that’s big enough to share, then you’re in for some extra income if you rent out your extra space. Using this tactic works even if you’re not looking to rent out your home all the time. Websites like Airbnb and Agona allows you to rent out your property where it fits your schedule.
Tax breaks courtesy of a mortgage.
Another awesome advantage of homeownership is the chance to take a tax deduction on mortgage interest. Homeowners who itemize deductions on their taxes will be able to reduce taxable income by deducing interest paid on home mortgages. Renters don’t have the same perks.
Fixed mortgages allow housing payments to be predictable.
Payments with a fixed mortgage rate allow you to stay with the same payments throughout the loan’s life – unless you borrow against the equity from your home.
This isn’t the case with renting, especially in places without rent control. As a renter, you can be subjected to large rent increase when your lease terms expire, which can be as often as every six months to a year. If you’re looking for the best fixed home loan rates, check out New Castle Permanent, who offers this along with promos and additional perks that can’t be found in other providers.
Investing in your own home will always be the better choice if you’re looking to be grounded in one place or are looking to start a family. Best of luck finding that dream home.