Ether you are leaving the rental market for a new house or apartment or you are selling and then buying again. These two things are very different, and leaving the rental market can be a little scary but many people do it all the time, and may even bring stability to your life, as before you were at the mercy of the landlord not knowing if you had to move at any month.
Before you leave the rental market, you must consider a wide range of issues that are going to pop up. You will need to be very financially secure, as buying a house or apartment is not something you can do in one easy payment, but may take 25 to 30 years to pay off. You need to have a full time job, you will also need over ten thousand dollars for a deposit saved up or even more depending how big the mortgage will be.
Buying a house is something that will be hard to get your head around; you need to consult with many different banks to see who will give you the best deal and the best rates. Fixed rates are best as you will not be at mercy of the economy, even if rates go below the fixed rates, interest rates can go up higher than your wages when there is a large financial crisis like there was in 2008.
In Australia the best thing about buying a house and the worst thing about renting is that some mortgages in some places is so that the repayments for buying a house can be cheaper to renting and every dollar not going to a landlord is better for you and investment in your future.
Dealing with a landlord may have many downsides, but when you are buying a property you will need to pay many new things. You will need to pay stamp duty, you will need to pay rates, and house insurance, you will also be stuck with your neighbours that are around your new home as you can’t just up and leave.
While you may have thought competition was hard in the rental market, finding a great house can be just as tough. As with renting you might not always find exactly what you want, but buying a house should take you a considerable more time looking for the right one. However you might not find your dream home and that’s ok, you could always move in 10 years to find something you absolutely love and upgrade down the line.
If you are moving into your new home with your partner who works than it is easier on you, and you may want to buy something that is more expensive. Keep in mind if one of you wants to take time off for children that you might not meet the repayments if they require both to be working.
Job loss can occur at any time and you need to be aware if you or your partner loses their job they might not have another for a year or more. So buy something that requires one income as those factors could crop up down the road.
Having your own home can be fun, as you can do things inside the house putting a nail in the wall, having pets, and so forth without permission of the landlord since you own the house. If you want to do major works you will still have to contend with the council and jump through those hoops.
When you already own your own home and think about moving into a new property you have major advantage most if not all of your current house is been paid off. You will be able to get something bigger or at a better location with not that much trouble and since the bank knows you can handle a mortgage will give you more finance for a more expensive place that you had always dreamed of.