Understanding the Myths of Home Ownership
Busting the home ownership myths for Western Australians.
You’ve probably heard them all, all the reasons why home ownership might not be for you, but have you ever had the chance to sort the facts from the fiction?
In a market where rentals are becoming harder to find, and rents are rising, it might just be time to face these myths head on and find out truth lies behind the stories behind owning a home of your own.
We’ve gone through and tackled the top 5 myths of home ownership:
Here are the 5 biggest myths of owning a home.
Myth: I can't handle a loan
Fact: Sure you can. If you’ve ever used a credit card, borrowed money for a car or bought on interest-free terms, you’ve experienced a loan. Investing in a home is no different. In fact, it’s the best kind of loan because it can make you money.
Myth: I need to save a large deposit to get a loan
Fact: In some cases, you don’t need any savings at all. Where you do, we have finance packages available that require only a minimal deposit. Plus, you may be entitled to government grants. When you become a Mover, you’ll have your deposit before you know it!
Myth: Renting is cheaper than a mortgage
Fact: Looking at a simple weekly cost is seriously misleading. While your actual dollar figures may look good, you need to factor in rental rises that occur as property prices rise. Of course, you also have absolutely no equity if you rent, and nothing to show for your weekly payments. Suddenly cheaper is not really that at all.
Myth: I won't be able to afford interest rate rises
Fact: Of course it’s important to factor in possible future rate rises. One way to avoid being affected by rises is to fix your rate. You can fix mortgage interest rates for up to ten years. Your repayments will stay the same every week for your fixed period so you know exactly where you stand. And that makes it easier to budget for the other things in life.
Myth: I'll be paying off the same house for 25 years
Fact: The beauty of owning an asset such as a house means you can upgrade. Your first home is a stepping stone to your absolute dream home later in life. The other plus: once your loan is paid off, you don’t have any rent repayments and you own the home outright. Consider where you’d be after 25 years of renting.
To find out how you can escape renting, download your free Rental Escape Kit