subject: First Home Buyers Benefit From Ownership [print this page] Escalating real estate costs do not present a cheap way to become a property owner in todays Australian home-buying market. However, with a history of ever-increasing costs, waiting to buy property may not be in the best interest for any first home buyer. People looking to eventually own a home down the road may want to consider now as that time to buy. Property capital gains for the next three years are predicted to exceed 10 percent.
Wise Choice Makes Valued Investment
Smart buyers who choose a great suburban location that possess predictable growth including all the necessary amenities in life should see values increase steadily, making a purchase valuable first home buyer advice. Keep in mind that this home need not be that particular dream house you envisioned with all you ever wanted. A first home is simply what it is called your first home. Although not necessarily fitted with all the features you would like, it is the first step toward property ownership that probably will not be your last.
Benefits are Attractive for Home Ownership
Even if purchasing property presents some challenges and sacrifices for a first home buyer, there are several benefits when making that first buy including
Equity Through making monthly mortgage payments, your new home becomes a virtual savings account and a good vehicle for accumulating a large amount of money
Money paid into a home purchase will eventual wind up in your pocket as opposed to the rent payments that end up in your landlords bank account
There are many tax considerations where interest on home loans can be deductible where, typically, these tax advantages are not available to renters
Investing in an owner-occupied home is a safe, sure way to watch your money grow over an extended period of time
Home ownership can provide that retirement nest egg to call upon in your golden years
Disadvantages Renting a House
There are many disadvantages renting a home that many people neither realise nor take the time to consider including:
Rent payments typically go up each renewal
If renting a house on the market, you are subjected to various visits to the property
You are at the mercy of your landlord for needed repairs and other considerations
You cannot personally customise rental property
A rise in housing pricing can be reflected in a rise in rental payments
Rent you pay is like term life insurance; there is no cash value
Incentives Spur First Home Buyer Activity
This initial First Home Owner Grant (FHOG) boost was issued by the federal government in October 2008 that doubled the grant from $7,000 to $14,000. An additional boost for building or purchasing a new house was raised t0 $21,000. The period ended Sept 1, 2009 for the above. As of Oct. 1, 2009, contracts executed by the end of the year Dec. 31, 2009 allow for an extra $3,500 toward existing homes and an extra $7,000 applied to building or buying a new home.
The best first home owner advice would be to get into the market before the end of the year to take advantage of the extra incentive still available.
by: David Nalin
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