Home buying is complicated, that’s a fact. While renting offers the safety of having a landlord and not having to worry about any repairs or damage, and paying off a 30-year loan, being a homeowner will still be the best as you grow equity and wealth along with owning something that’s really yours.
Yes, making the jump from renting to owning can be scary with all the processes of inspections, loans, negotiations, and appraisals, but you’ll be on your way to the Australian dream of home ownership.
Here are a couple of things you probably don’t know about buying a home.
It’s not always necessary to have a 20 percent down payment
There are quite a few loan options available out there that don’t require a down payment of 20 percent. Lenders are now letting first-time home buyers know that they offer mortgage options other than the traditional 30-year loan with a big down payment to ensure that they’re aware how possible it is to purchase a new home.
There are many awesome deals available out there
Many first-time home buyers want the best deals on their dream homes. This is the same with those looking to invest in residential properties. If you don’t take this into account when making offers, you’ll be forced to endure the frustration of getting outbid or outright rejected.
Real estate is an opportunity, not a burden
Many first-time home buyers get cold feet. People who consider home ownership for the first time often don’t know that owning real estate is a fantastic opportunity.
Home ownership might even seem like a burden for those with commitment issues. You can prevent this from happening by being aware of the ways to generate passive income from real estate. For instance, owning a starter home can make great rental properties.
Homeowner’s association isn’t necessarily for everyone
HOAs may seem like a good option for many buyers. Common recreational areas, security, and other amenities are a few common benefits that can be derived from HOAs. However, these benefits come at a price.
Aside from monthly dues, HOAs also have restrictions where buyers need to pay close attention to. This includes pet and rental restrictions that can be imposed mandatorily on all homeowners.For some home buyers, HOA-governed communities are good, but for others, they can be a nightmare.
Low, yet value-packed home loans are available
You can find the lowest fixed rate home loan in Australia through Newcastle Permanent, who offers it along with loads of extra benefits, some of which includes fixed Rates for 1 to 10 years, repayments of up to $25,000 p.a., fixed repayments, $0 application fee for personal and car loans, $0 annual value+ credit card fee, redraw, plus discounts and benefits available on other products.
Don’t forget to research well the lender you’re getting a mortgage loan from as you’ll be with them for a long time.
There you have it. Of course, there are other things you need to understand before making the move to purchase your own home. Do your due diligence on researching the neighborhood where you’re looking to buy. It’s also wise to talk to a property expert or financial counsellor before committing to your home ownership goal. Best of luck!