From renting to buying - are you ready?
Category Advice
Thinking of leaving your lease behind and climbing the property ladder? The current property market is on your side. Record-low home loan rates, a rise in 100% home loan approvals, and a raised zero-transfer fees threshold have created the perfect storm for your goals. Here are some signs you're primed to move from renter to homeowner.
You're financially able
Buying a home is a serious financial step and you need to ensure your budget can handle it. If you're applying for a home loan, you'll be required to show you can keep up with the monthly bond payments.
Having a stable career will count in your favour. The high possibility of future salary increases will help you keep up with household repairs and municipal rates increases. Your company should have a good history in the industry with a low possibility of retrenching employees.
Showing you can successfully manage your debt will also boost your chances. A good credit score is a big factor in getting a home loan approved at favourable payment rates.
Do you have a sizable amount of savings? This is another positive sign. You could use it as a downpayment, lowering your monthly home loan payments. But, it can also assist in emergencies for home repairs or bond payments.
You're in search of stability
If you've fallen in love with an area and can't imagine leaving, you're a homeowner-in-the-making. While people can (and do) rent for life, it makes more sense to work towards homeownership if you'll be putting down roots.
Rent can increase with market changes and inflation. However, if you've chosen a fixed bond rate, you can enjoy consistent monthly payments. Homeownership can give you peace of mind and allow you to budget effectively for the long term.
Your family is growing
A need for more living space is another sign you're set for homeownership. By buying a home, you can ensure it fulfils your new lifestyle requirements.
Having a child can spur a need for a home that's safe for kids and close to schools and daycare centres. While there are plenty of child-friendly rentals, you might not be able to customise the premises according to your needs. You may also want to create a legacy for your child through a home they'll eventually own.
Adding a pet to your household is also another sign homeownership should be considered. A new puppy or kitten can scuff flooring and damage walls which could lead to stressful disputes with your landlord.
You want to design your own home
Your lease agreement can restrict the changes you can make. If you're longing to stamp your personality on your property, you're in the right zone for homeownership. As a homeowner, you'll be able to remodel your kitchen, landscape your garden, and decorate your home as you please.
You're after more privacy
According to the Rental Housing Act, your landlord has the right to inspect the property. Additionally, you might also be renting with a roommate. If this situation is disrupting your lifestyle, owning your home can prove beneficial. It allows you to take control of your living space.
Tips for potential homebuyers
Moving from renting to buying is a challenge. But, the right steps can help you make the transition much easier.
- Build up your savings for a downpayment or emergency fund.
- Work on raising your credit score.
- Understand your needs. It's good to evaluate the pros of renting versus buying for your unique situation.
- Get pre-approved for a home loan so you know what you can afford.
Not ready to buy?
That's okay. Buying isn't for everyone. Renting may also work better for you if you value flexibility, the freedom from certain maintenance, and have other investment plans. If you'd still like to move, you can choose to downsize to an affordable rental property or upsize to a larger rental property close to more desirable amenities.
Make your move with De Lucia Group
Whether you're buying or looking for a rental property, De Lucia Group is in your corner. Our team of professionals can assist with finding a home that meets your needs. View our properties for sale or to let, send a message, or call Michael De Lucia directly on 082 493 1089.
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Author: De Lucia Group
