Why Owning Your Own Home Should Be Your Priority 

April 27, 2022
owning your own home

There is a lot of debate about whether you should opt for a rented home or stick to owning your own home. 

Many people have their unique reasons for choosing to rent or buy; however, nothing beats coming home to a space that is actually yours. 

Friends, families, and co-workers may have egged you on about owning your own home, but taking such big steps comes with reservations. Your doubts are valid. 

Choosing to own a home is not an easy decision to make, especially in an unstable Australian housing market. 

Owning your own home is a rewarding accomplishment. But, if you are still confused, we will share tips, pros, and cons about owning a house.

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Tips on buying a house

Owning your own home

Even after you are sure about how to own your own home, you have only just decided. Now you have to take action and the steps below will guide you. 

1. Check your home loan eligibility

Reach out to several lenders to know how much you can borrow depending on your serviced loans and past and present financial records.

Everybody loves to dream big but try to stay within your capabilities. Knowing the amount of money you have and expect gives you a clearer perspective of the process before you start looking at homes.

2. Explore your finance options

There are many advantages of a mortgage and Australian home loan rates are competitive, so you get to pick the best deal for you. 

Ask around for loan companies. Explore Soho Home Loans. There are many of them, don’t worry. It is good to compare loans to get a lender with terms that work perfectly for you.

3. Consider buying a new property

With Australia running low on housing, the government is doling out incentives and grants to facilitate the construction of new homes.

Many first-time homeowner grants are available for new builds and off-plan homes; you can benefit from the initiative. 

4. Hire a professional in the real estate sector

owning your own home
Young woman and her husband communicating with insurance agent on a meeting in the office.

A real estate professional will guide you on the best lenders to choose and what property to purchase. Some seasoned professionals can help you every step of the way. 

Buyer agents can search for and negotiate on properties, and a mortgage broker can arrive at an impressive loan deal for you. 

A certified conveyancer can proofread your contract. These professionals ensure all the key details are sorted, and you don’t break a sweat.

5. Outline a strategy to make your buy.

Your strategies will depend on your choice: do you want an established home, or do you want to build/renovate one to your taste?

An established home is more likely to have social amenities surrounding it. These are parks, churches, shops, transport, and even neighbours. So, if it is the bubbly scenery you want, you’ve got it.

On the other hand, you can like the environment but not the home, so you need to renovate. Check out the feasibility of renovation before getting knee-deep.

Now, building a house is a whole different story. You will decide everything from doorknobs to bricks. Do well to apply for a construction loan.

Pros and cons of buying a house 

Owning your own home

Since many people are still not convinced on whether or not they need to own a home or rent, here are some pros and cons of owning a home for reference purposes. 

Pros of owning your own home

You have an investment

Your property will gain equity over time. Home prices/value usually increase and this puts you at an advantage.

You can leverage your home equity to redraw your mortgage loan or borrow funds. This perk will boost lenders’ confidence in you, and you will have money to purchase some of your guilty pleasures. 

A car, some renovation, or a holiday in Sydney? Make your pick.

You acquire living security

Nobody can take your home away from you. However, as a tenant, your home security lies in the hands of the landlord, who may decide to stop renting tomorrow. 

Moving can be expensive and stressful, so you don’t want someone to pull the plug on you suddenly. You can sleep with ease by owning your own home, knowing you are in charge.

You can bring your dreams to life

Owning your own home allows you to renovate as you please. You can have a zoo in your backyard if you wish!

Home improvement increases the value of your home, and if you ever decide to sell, all of the profit goes into your pocket.

You get to control the costs better

owning your own home

When you are renting, the landlord has the final say. They can hit you with rent increases, and you have to either abide or vacate.

This case is different in your home. Expenses will come, but they will come easily. Fixed-rate home loans can come to the rescue and you can say bye to the service hikes.

Mortgage repayments are like saving money

It doesn’t feel that way, does it? Now, this is how it works. When you rent, you get a roof over your head. This value lasts for as long as your money’s worth. There is no end reward.

However, with a mortgage, it is like saving for a home you already own. Renting may be cheaper, but you will not reap any value later.

Cons of owning your own home

owning your own home

Financial burden

Owning your own home puts financial risk in your hands. You will start servicing a mortgage which will not end well when you default. 

Failure to keep to routine payments will hurt your credit score and run you into debt. According to ABS, most over-indebted people in Australia have running mortgages.

Possible decrease in home value

A bad renovation decision or a decrease in your neighbourhood’s value can blow your home’s price tag. These possibilities are why it is important to get an expert opinion on favourable locations and renovation attempts.

You may have to compromise on the other aspects of your life

Again, owning your own home is a massive step, and it gulps money steadily. There are always costs like stamp duty, conveyancing fees, the initial 20% deposit, and, to top it, mortgage repayments.

Nevertheless, with a reasonable paycheck, you can weather the storm.

Need more advice?

Keep yourself updated with useful tips like these by downloading our app for the full Soho experience. Not only are we finding you your dream home, but we’re also helping you save for it and decorate it! So don’t forget to swipe on your property matches so we can get you there faster.

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Join Soho for free, the new way to discover and swipe your dream home, connect to experts in the real estate community and stay updated with market trends when you are buying, renting or selling property.
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