Purchasing your first home is an exciting achievement and whilst it can seem daunting, if you do your research and you’re prepared, it can be a great decision that sets you up for life. Here are just some of the benefits of buying your first home:
1/ Your house, your rules
Say goodbye to sticky hooks and hello to hammers and nails – in your home you have the freedom to personalise your space however you like. This includes making enhancements that increase the value of your property and which suit your needs as time goes on.
2/ Greater financial stability
Home ownership comes with a unique set of expenses, such as mortgage repayments and land rates – though these are generally predictable, and if you choose a fixed-rate home loan, can be set over a period of time to help you take control of your finances.
3/ Build equity and grow value
Equity is your friend – it’s the value of the property you own (i.e what you’ve paid off). Equity is also spurred on by increases in the market value of your property. As you build equity, you may be able to redraw on your loan or borrow more money to go on a holiday, buy a car or invest in property.
4/ Forced savings
Stay with us here – your mortgage repayments are actually a way of saving money. If your loan repayments include principal as well as interest, then you’re regularly putting money towards paying off your property. Compared to renting, making payments towards home ownership means you’ll see the value of your investment in the future.
5/ A permanent address
Whether you’re renting from a landlord, or living with your parents, you may be asked to move on when you least expect it. Owning your own home gives you the freedom to make big plans with the certainty of knowing where you’ll be living in twelve months’ time.
The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Fairhaven Homes recommends that you consider whether it is appropriate for your circumstances and that you seek independent legal, financial, and taxation advice before acting on any information in this article.