Buying a home is a journey that, for many, can prove to have a number of hurdles. However if people can overcome these obstacles, home ownership can provide many positive benefits.
The HomeStart research study ‘Home Truths’, commissioned in June 2010 to gain an understanding of South Australians’ sentiment towards home ownership, revealed the principle reason why home ownership is important is financial security.
The great Aussie dream of home ownership gives us a sense of stability with a ‘home of our own’, and the security that we are accumulating wealth with an asset that is likely to increase in value over time.
Although the housing market has been tough over the last few years following the global financial crisis, figures show that locally, house prices have continued to rise.
The Real Estate Institute of South Australia
(REISA) June 2010 quartile Market Update
reports that Adelaide’s metropolitan median house price has increased by nearly 14% over the past twelve months – rising from $360,000 in June 2009 to $410,000 in June 2010.
Figures such as these demonstrate that owning a home can be a good investment; and there is further comfort gained from knowing that you are paying off your own mortgage and not someone else’s, as with renting.
Further findings from ‘Home Truths’ revealed that saving for a deposit has become the primary concern for aspiring home buyers, however you can improve your deposit position by setting up a budget or savings plan.
There are websites that can help you prepare and manage a budget, such as fido.gov.au
, the Australian Securities and Investment Commission website
, or this website that can help you achieve your home ownership goals.
It is still worth looking into what options are available even if you have a smaller deposit. While some banks have tightened their lending criteria and now may require a larger deposit, not all lenders have the same requirements.
It is important to investigate all lenders to see what is available. Enquire about deposit requirements, interest rates, lenders mortgage insurance, fees and other costs, and work out what’s the priority for you and your situation.
Inevitably there may need to be a trade-off of some of these considerations between different lenders, but with many home loan options available, you can prosper from the benefits of home ownership sooner rather than later.
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