Building your first home is the great Australian dream that everyone looks forward to in their young lives. The rent trap can be hard to break, however, which makes it harder for people looking to get into the housing market. It helps to talk to someone who can help you make financial decision as building your first home may not be out of reach. When comparing renting vs building, it is important to look at your financial situation and where you would like to be in the future. Sure, for some people, renting is a viable option, but with great value house and land packages available through WOW Homes, it tends to be more lucrative to build rather than rent. Here are our top reasons why you should build a house instead of falling into the rent trap.
Look forward to your retirement.
It may be fun to live in a cheap share house when you’re young, but that is not sustainable long-term. Eventually, you will want your own space and privacy with your family or your partner. Renting during your working years is sustainable, but it is very important to think about the long term. The age pension in Australia, while one of the best schemes in the world, actually doesn’t go as far as you would think.
A single aged pension in 2017 is $808.03 per week – and this is likely to reduce as the years go on, given Australia’s aging population. When you take out general health expenses, bills, grocery expenses and then rent on top of that, you will be scraping to get by even in your retirement. The idea that you build a home and pay it off in 30 years means that in retirement you take out a massive expense and are free to enjoy yourself a little more. Paying off your home whilst you are young, means more flexibility as you enter into your golden years.
Create some forced savings.
Having a mortgage is a great way to save and create an asset without having to really manage your money. The weekly mortgage taken out of your account is going into a strong asset, which if you keep for more than five years, is likely to grow in value. Most young people find it really hard to save money without a goal; if you see it in your account, you are likely to spend it. Building a house is a way to save your money in bricks and mortar.
Make changes as you see fit.
When you are renting, there are very few things you are allowed to change or alter in the home. When you are in a home of your own, you are free to create, change and do whatever you see fit. Need to paint a signature wall to make your lounge room pop? You are free to do so. Want to add another lock to add some extra security? Go ahead and do so. Having your own home gives you the freedom to live your most authentic life.
More privacy for you.
Renting a home means it is never truly your space. Every couple of months, you will have a rental inspection and someone will waltz through your home to their heart’s content. Sure, they cannot just drop in unexpectedly any time they want, but they still retain the authority to request a viewing of the home when the homeowner feels the need to. Owning your own home gives you the privacy and peace of mind to ensure that space is no-one’s other than your own.
For more information regarding whether you qualify for a $30,000 First Home Owners Grant or to find out which suburbs are available for you to purchase a house and land package, contact the team at WOW Homes today.