Buying a house is a big step. Some people decide to do it early in life, others take a bit more time, and there are those who simply don’t know what to do. And that’s ok!
Buying a property of your own is not for everyone, but if you have ever wondered whether this would be a good decision or not, here are some signs that might help you figure out if you are ready to stop renting and finally buy your first home.
5 signs you are ready to stop renting and buy your first home
1 – You feel like settling down
If there is one thing the pandemic has taught us for sure is to settle in the same place for a while. For some, this was not easy to take at all: not being able to travel overseas, no more planning itineraries, no more booking hotels, no more visiting new places. Instead, we had plenty of time at home.
This situation might have been challenging for many people, but certainly not for everyone. And if you are one of those people who discovered themselves a homebody after the pandemic, this could be the first sign that you are ready to stop renting and buy your own place to finally settle down.
Let’s think it further:
Ok, you like staying at home. But can you see yourself happy to live in the one local for the next 3 to 5 years? Do you no longer have the urge to travel for long periods?
If you said yes to both of these questions, we have our first clue!
2 – You are in a good financial situation
Have you reached a point of life where you see yourself receiving a steady income and no longer having trouble making ends meet? Maybe you have a nice job, a good salary or enough savings that secure you a comfortable life… If so, this is another good sign that you might be ready to stop renting and make the next step towards having your own property!
A home loan commitment is a big financial step. In fact, depending on the property price and the interest rates, repayments may cost the same or even less than rentals. Which means you don’t need to have a lot of money to buy a house. However, having your financial life sorted is the first essential step to understand if this is the right decision.
3 – You are going through life-changing events
There are some situations in life when we need a change.
Maybe you are getting married, having your first kid or planning to grow the family even more. If any of these sounds like what you are going through at the moment, then it might make sense to have a place to fit your family needs best.
Of course you can keep renting in a case like that, but this might also be an excellent time to think about having something that is entirely yours. Buying a house at the beginning of a new cycle brings along even more stability.
Keep in mind that you will be able to live in the same place for, at least, the next few years without the risk of being asked to move out at any time. Also, you can choose the neighbourhood you love, with all the facilities – public transportation, schools, shops, cafés – to suit your family for those years onwards.
4 – You want to invest in something that will bring stability
Buying rather than renting a house is a much more stable investment, as there is no risk that the landlord will ask you to move out for any reason or increase the rent unexpectedly.
Besides that, having a property of your own brings financial stability in the long term, once that may grow in value, building up some equity for you. Down the track, you can request a top-up to access the equity and use it for other goals, like buying another property, making renovations on your house or even buying a personal asset.
5 – You are unhappy with some renting situations
Living in a place that is not yours involves some downsides that might bother you a little bit. Think about the frequent real state inspections, rent increasing every now and then, the landlord having access to your house at short notice and constantly having to ask permission to do anything at your home.
Let’s suppose you can’t cope with that anymore and can’t wait to make a home your own, having the freedom to hang pictures on the walls, change the colours of the living room, renovate the carpets or any other changes that otherwise would have to be previously submitted for approval.
Does this sound like you? If so, consider searching a bit more about buying your first house. In this link, we have many blog posts explaining all the steps through that new home buyer journey.
6 – Being responsible for all the home maintenance doesn’t scare you
The positive aspect of renting a house is asking the landlord or real estate whenever you need something fixed. You don’t need to search for professionals, deal with tradies or fix anything yourself. Instead, you contact them and report the problem.
This is something very positive for many, but not for everyone. Some people don’t bother doing house maintenances and actually enjoy fixing things up. If this sounds like you and you think you should be fine with that, we have one more sign.
Whether you have decided to stop renting and buy your first home in Australia or are just wondering and learning about that process, we have got you covered! Here at Capta Financial, we guide you every step of the way, from the first meeting to the door of your dream property.
Talk to us, and we will be happy to be part of this journey.
Follow our Instagram page for daily tips!