1. You want an asset that may grow in value over time
This is what’s known as capital growth. If your property value increases, so does your equity, which is the difference between your property’s value and what you owe on your home loan.
Down the track, you could potentially use this equity for other things like further investments, home renovations, or as a deposit for your next home.
2. You want more stability
If you buy your own home, there’s no risk that a landlord will tell you to move out. What’s more, owning a home can offer additional security in retirement, as you won’t need to worry about paying rent after you stop working.
3. You want to make a home your own
Buying a home means you have freedom to make changes to it. You can mount a TV on the wall, update the carpet or recreate that gallery wall you saw on Pinterest.
4. You can afford the mortgage repayments and ongoing costs
Home loan repayments might be more affordable than you think. The Bankwest borrowing power and repayments calculator can help you work out how much you could borrow and what your repayments might be.
Compare the repayment estimates to what you’re currently spending on rent and you might be surprised to find there may not be that much of a difference.
Keep in mind that there are some ongoing costs involved in buying a home that you don’t need to worry about when renting, like council rates, strata fees and property upkeep.
Find out what your borrowing power is to see what you can afford.
5. Covering the deposit and other upfront costs is doable
Generally, you need to have a deposit of at least 20 per cent of the property purchase price, and be prepared for the other upfront costs of buying a home, like stamp duty, insurance and inspections. Our home loan fees calculator can give you an idea of what they add up to.
But covering a deposit might be more doable than you think. Find out more about how much deposit you need, including what to consider if you want to make a deposit that’s smaller than 20 per cent.
Or how about buying and renting at the same time?
If you can’t afford to buy a property in an area you want to live or you’re not ready to put down roots, you might like to consider something called ‘rentvesting.’ This involves living in a rental property while buying an investment property in a more affordable area.