For many Australians, rate hikes and inflation have made the dream of property ownership feel ever more distant. But a recent analysis shows that meeting mortgage repayments could actually be cheaper than renting for more than a third of Australian properties.
Look, we get it. Often the biggest obstacle in the way of home ownership is saving up for a deposit.
But once you’ve got that sorted – which we’ll help you tackle below – a recent CoreLogic analysis found servicing a mortgage was more affordable than average rent prices in 518 Australian suburbs. In fact, in some areas there were savings of over $900 a month.
Not to mention that with rental prices surging by about 10% across Australia over the past year and vacancy rates at a record low 1.1%, home ownership has possibly never looked more appealing!
So we’ve got some tips to help you switch from renter to homeowner in a timely (and confident) way.
Buying now or in the near future could mean less competition for properties, price drops and sellers willing to negotiate.
And recent rate hikes mean that, even during the spring selling season, we’re seeing fewer buyers. In fact data shows the median number of days that properties sit on the market is now 35, compared to 20 days last year.
And in response, property prices are falling. September data showed a 1.4% drop.
So by shopping around in the right areas and putting your negotiator hat on, you may get a price that could make buying cheaper than renting.
And most importantly, buying property and making mortgage repayments can create equity for you … instead of your landlord.
There’s no denying that saving a big enough deposit to buy can be a bit of a slog.
But what if there was a way to sidestep the standard 20% deposit? And possibly avoid stamp duty too?
There are a number of government schemes you may be eligible for that can fast-track house buying by an average of 4 to 4.5 years.
The federal government offers low deposit, no LMI loans for eligible first home buyers, single parents and regional first home buyers.
Also, all state governments (except South Australia) have first home buyer stamp duty concessions for those eligible.
And you can stack these schemes together for more bang for your buck.
But you’ll have to move quickly on the no LMI schemes – they’re allocated on a first-come, first-served basis every financial year.
Keen to make the leap from renter to home owner? If so, you’ll be busy researching the market and learning the art of the deal – so why not get a helping hand with your finances?
We can help find the right loan for you and provide you with helpful guidance that could increase your chances of mortgage application success.
And while we’re at it, we can assist you in applying for any money-saving government incentives you may be eligible for.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
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