For many people who rent, the advantages of doing so are clear.
Rather than being tied down to a mortgage and a specific location, they have the freedom to move when and to where they like.
This can be a big plus in many circumstances. And yet many renters may have a niggling feeling like they are missing out – why do so many choose to buy a home while still relatively young?
Let's have a look at common reasons why you might want to consider buying a first home.
Owning your own home can provide you with the kind of stability that renting simply can't.
There is no landlord to kick you out or raise your rent unexpectedly – you're the boss!
Plan for the future
A home isn't just a shelter over your head – it is also an excellent investment for your long term future.
While renting can provide you with all the same tangible comforts of owning a home, it can't provide you with the comfort of knowing that you are building your ownership in a significant asset.
In this way, paying off a home loan can be seen as an enforced savings program – what better way to ensure you don't fritter away your hard earned dollars.
Pay your own mortgage
Chances are that your rent payment is going towards someone else's mortgage.
Now that may be fine by you, but at some point it may dawn that you might as well be paying your own home loan off!
And there is more than a little sense in this conclusion. As well as paying off your first home buyer loan, mortgage repayments progressively build your equity stake in your home.
Once your equity has grown, you can then use it help fund further property purchases or other large expenses.
Indeed, by buying a property and renting one or more rooms out to tenants, you could have others help pay your mortgage off too!
You can contact a Smartline Mortgage Adviser on 13 14 97 for home loan advice. Or complete our call request form and we’ll call you!
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.