Enjoy the benefits of home ownership
Tuesday, 2 September 2014
For yet to be home buyers stuck in a rental cycle, John Oliver outlines eight reasons to get your home ownership journey moving.
1. INVEST in your future. Owning a home is a savvy financial strategy for building long term wealth and security. Homes are considered a safe, steady investment, with values that generally rise over the long term while your home loan debt reduces.
2. BUILD equity. The largest measurable financial benefit to homeownership is price appreciation. Price appreciation helps build home equity, which is the difference between the market price of the house and the remaining mortgage payments.
3. HAVE financial certainty. Renters are susceptible to rent increases and generally have no idea what they'll be paying in future years. Home owners are susceptible to interest rate increases and decreases and potentially changes to their loan payments, but they have the option of taking out a fixed-rate mortgage which will provide set repayments for the duration of the fixed rate term.
4. PUT down some roots. Home ownership provides a sense of security and helps a family to build connections within their community. Research shows that home ownership contributes to wellbeing, feelings of financial security, community pride, educational and health outcomes for families.
5. REVEL in the freedom that home ownership brings. You get to pick the colours you want to paint your home, decide where you want to hang your photographs or paintings and how you want your garden to look. You can plants trees and the plants that you like and enjoy them for years to come.
6. GENERATE a good credit rating. Making regular repayments on a home loan will provide you with a good credit rating, providing you with more borrowing power down the track should you need to take a loan or get a credit card.
7. ENJOY “living” stability. You often hear of renters having to uproot and move every 12 months or few years. With home ownership you decide when you want to move, and if indeed you want to, rather than being told by a landlord you must move out.
8. CREATE your own wealth. Paying rent can mean you’re paying off someone else’s mortgage, so why not be paying off your own?
9. TAKE advantage of the Adelaide housing market. Adelaide remains one of the best places in the country to get into the property market, with one of the lowest median house prices for a state capital city in Australia. Don’t forget there are grants if you build and stamp duty concessions if you buy an inner city apartment.