5 real values of owning a home
- Posted in Getting Started
Buying a home is a great achievement. While it may sometimes seem challenging, the many benefits that come with home ownership make it all worthwhile.
In the short term, renting may seem like the best option for some people, but here are five reasons owning your own home adds real value.
1. You'll build equity
You equity grows when the market value of your home increases or when you make extra payments on your mortgage. To calculate your equity, you need to know the market value of your home and the amount you will need to pay if you end your loan. Read more about it here. You may be able to take advantage of this equity and access it by redrawing on your loan, or borrowing on top of your equity such as additional advance or mortgage refinancing. These funds can be used for a variety of purposes from renovating your property, buying a new car or to go on a holiday.
2. You'll have living security
While renting, you’re constantly at the mercy of your landlord, who may decide they no longer want to rent their property out. Moving house is expensive and inconvenient, especially if you have to do so unexpectedly. When you own your own home, you can sleep sound in the knowledge that you call all the shots.
3. You can create your dream home
Landlords aren’t usually happy for tenants to remodel their property, even if you think you’re improving it. When you own your own home, you have complete creative freedom – you can decide to renovate the bathroom or paint the walls without question. Home improvements generally increase the value of a property and when you sell your property, every dollar that your home gains in value will be money in your pocket! If you need help working out where to start, take our quiz to discover your home decorating style.
4. You have more control over costs
When you’re renting, your landlord may decide to increase your rent, leaving you with little choice but to accept it or incur moving house costs. While home ownership comes with different expenses, like mortgage repayments and rates, these aren’t likely to rise by large amounts unexpectedly. In some instances you may even be able to control them, by choosing a fixed-rate home loan, for example.
5. Your mortgage repayments are a way of saving money
While it may not always feel like it, your mortgage repayments are a way of saving money. Your repayments include principal as well as interest, which means you’re putting some money each month into your own home. While renting seems to be cheaper, they don’t force you to save towards bricks-and-mortar meaning that you won’t realise any value from them in the future.
When you're deciding whether to continue renting or to buy a home, there's a lot to weigh up. Speaking to a financial adviser may help you work out the best way to meet your financial goals. If you decide that buying a home is the best choice for you, contact a Pepper Money Lending Specialist to discuss your home loan options on 13 73 77 or speak to an accredited Pepper Money Broker.
Alternatively, you can obtain an indicative pre-approval of your borrowing power here in minutes.