Everyone dreams of moving out of rentals and living in their own place, possibly with a family. The Australian real estate market has been on a hot streak for some years. That means property values have largely gone up. If you are looking for residential properties to buy, the foremost concern would be cost. In certain areas, like urban places, homeownership costs have significantly shot upwards.
That would make anyone wonder whether it’s best to continue to rent. Still not sure whether you should move on to buy property? Then consider these questions to find out:
Can Your Income Handle a Mortgage Payment?
Unless you hail from a very wealthy family, you would need a loan to lay ownership claim to property in Australia. A mortgage is an essential but a huge financial responsibility. Most people do get qualified for mortgages, but paying the mortgage is a struggle for many families.
Before you start touring display homes Mildura to find your dream house, take a look at your personal finances. Calculate how much the property you would cost and then shop for housing loans. You will have to submit an application to a bank to find out how much you would qualify for first. Then, you would have to factor in the mortgage payment to your existing income and see if you can actually afford it without going completely broke.
Though mortgage payments are hefty, you should be able to afford it without cutting back on necessary personal expenses like groceries and petrol. If you can comfortably afford the mortgage, then you are ready to become a property owner.
Do You Hope to Start a Family?
If you want to start a family and have a couple of kids, then property ownership is well worth considering. Renting for a family could cost as much as a mortgage. Therefore, buying a home and paying a loan would be the pragmatic option considering that you would own a title deed once the loan is paid off.
Thinking about Earning Passive Income?
If you already have your own place, you can consider buying secondary property as a form of investment. Rental property is a great way to earn “passive” income each month. Being a landlord requires some work, but the job is largely effortless. You may need to qualify for a second loan to buy rental property. If you do so, it would be a great investment opportunity.
Are You Okay with Maintaining a Property?
Owning property is not as passive as some people think. Buildings crumble. So owners should routinely perform maintenance tasks to keep everything in tip-top shape. That means spending money on construction, building inspections, pest control, and so on. When you rent, the landlord largely handles these problems. When you are the owner, maintenance is your responsibility. Unless you are willing to handle that responsibility, you shouldn’t be a property owner just yet.
Scrutinise your finances before you decide to become a property owner of any kind. Remember that there will be fees and responsibilities associated with the job. When you fully understand what it takes, then you will be ready to become a property owner.