You’ve probably heard a few reasons why home ownership might not be for you. We’ve put together the 6 biggest myths about home ownership, so here’s your chance to sort the facts from the fiction.
Myth 1: I can’t handle a loan
Fact: If you’ve ever used a credit card, borrowed money for a car, or bought on interest-free terms, you’ve handled a loan. Investing in a home is no different. In fact, it’s the best kind of loan because it could possibly make you money in the future.
Myth 2: 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, our in-house finance team has packages that require only a small deposit. Plus, you may be entitled to a government grant, like the first home owners grant.
Myth 3: 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. And you have absolutely no equity in your rental property, and nothing to show for your weekly payments. Try out our Rent vs Buy calculator and see for yourself!
Myth 4: I won’t be able to afford interest rate rises
Fact: It’s important to factor in possible future rate rises, but one way to avoid those rises is to fix your interest rate. Your weekly or monthly repayments will stay the same during your fixed period, so you know exactly how to budget for the other things in life.
Myth 5: I’ll be paying off the same house for 25 years
Fact: The beauty of owning an asset like a house means you can upgrade. Your first home is just a stepping stone to your dream home later in life. And, once your loan is paid off, you own the home outright. Compare that to where you’d be after 25 years of renting.
Myth 6: If I lose my job, I’ll lose the house
Fact: If this actually happens, you’ve got more options than you would have if you were renting. For example, you could rent out a room to someone to help pay the mortgage. Or you could rent out the whole house and move in with your parents or a partner. Or you could sell the home and possibly make a profit.
Getting your first home is easy with Aussie Living Homes. Find out if you qualify to own your own home by submitting your details below.