Am I Ready to Buy a Home?
We have already discussed how to know if you’re eligible to buy a home, but how do you know if you’re ready? Buying your first home will mean some changes to your current lifestyle. So, let’s chat about those changes so we can find out if you’re ready to buy a home.
Your lifestyle changes are really going to depend on your income. If you have maximised your borrowing power and almost every leftover penny is going to your mortgage, you are going to have to accept some changes. Going out for breakfast every Saturday, or drink twice a week might not really be possible. You’ll probably have to prioritise using your extra funds for things like groceries. If you have kept your loan quite modest and will still have a decent amount leftover, then nothing much will likely change in this department. Lucky you.
(If you’re the former, Follow us on Instagram for weekly tips on how to still have outings while not spending much cashola).
If you were previously saving every penny to put towards a deposit, you might not really notice much difference in putting it towards your mortgage payment. The only difference here is that previously, since you didn’t have a deadline, you could slip up occasionally and dip into the savings for those tickets to your favourite band. Now once that cash is sent to your mortgage, it’s not coming back. One thing to consider though, is that as an owner you would have the added benefit of not paying rent, so you may actually have some extra cash leftover depending on your circumstances.
Buying a home is a financial commitment that you could likely have for the next 30 years (unless you pay it off early or sell). This does mean that you will need to be more responsible with your money, and what you previously might have saved, would now feel like it’s kind of evaporating into thin air. What you need to consider though, is that even if you didn’t own a home, you would still be paying rent. Currently to rent a two-bedroom apartment in Palm Beach Queensland, is around the same as paying the mortgage. Although if you owned it you would also be paying body corporate fees and rates. The benefit here with owning is that the money you are paying each week to stay in your home is going towards paying it off rather than actually literally disappearing into thin air.
Important Renter vs Owner Changes
If this article has so far had you biting your nails, and sitting at the edge of your seat, we are here to tell you it’s not all that bad. There are also some really awesome changes about becoming a homeowner. You can get a pet without asking for permission. You can make whatever changes to your home you want (no more ugly carpet!). You don’t have to move out and find a new place every time the owner of a place says so. And, you get to tell people you’re a homeowner in conversation and watch their face be really impressed.
So, are you sold? (Excuse the pun). Get in contact with us today to find out how as a QLD first home buyer, you could be eligible for $30,000 towards a deposit.