Breez Forms

Purchasing a Property

The right time to buy

In many circumstances, owning a home can be a very advantageous and smart choice.   Choosing the right time to buy is one of the most important steps in the decision toward home ownership.  There are points in the life cycle that owning a home makes more sense than at others.

For young adults who are not ready to settle down, buying a home may be premature, as it is harder to move when there is a house to sell first. Therefore, it may be smarter to wait to buy a home until other life decisions have been made, such as career choices, and the area that one wants to live.

If you are not ready to buy a home to live in, you may decide to buy an investment property instead.  This is an excellent market-entrance strategy so that you can watch your capital contribution increase over time at a far greater rate than leaving your money in the bank.  Investing in property has the added benefit of providing you with tax gearing benefits. 

Building Equity

When such life choices are settled, then many of the benefits of homeownership are more useful. Instead of paying rent, the homeowner is building equity. Because this is a process that takes place over time, its value isn’t fully realised unless it is in a place that a person intends to stay for a while.  Every time you buy and sell, there are significant costs involved.

Property ownership, whether it is for investment or to live in, is a smart choice. Once you have accumulated enough savings or have reached a point where your income is secure and the risk of defaulting on a loan and seriously damaging your credit rating is minimal, then, at that point, the benefits of home ownership outweigh the disadvantages, and you are ready to start shopping for the right loan and home for you.  

Protect your Investment

Achieving the Great Australian Dream of homeownership is certainly a worthwhile goal, but keeping that dream and being able to have the time and energy to enjoy it after you achieve it is just as important as reaching that goal.  So when you do decide to purchase make sure that you have enough money to insure your property against risks such as fire, flood, storms, fixtures and fittings.

There is also loan protection insurance available which can make your loan payments if you become involuntarily unemployed or suffer an accident or sickness.