Are you thinking about buying a house in Australia? While renting is perfect for many students and short-term residents, owning your own home could be a great investment in your future. In fact, if youre in a secure financial position, buying a house can be surprisingly affordable. Plus, your property becomes an asset as soon as you purchase it. In saying that, buying a house is a serious financial commitment. Here are the most important things to consider before getting started.
Whats your budget?
Maybe you have managed to build up your savings, or your parents want to give or lend you the money to buy a house. If that’s not the case, youll need to look at your options for securing finance through a home loan.
A mortgage secures a loan from a bank or lender that helps you pay for the home. You pay off your mortgage in regular instalments until your home has been paid off, with the understanding that the bank or lender can take back your home if you fail to repay your loan. The size of the loan that you take out will depend on your current savings and how much you can afford to repay in the future, as well as the value of the property you wish to purchase.