This is the Right Time for Buying a Home
Do you know that today it takes 7 times the annual salary of an averagely-earning professional to buy a home? This figure has jumped from 2 times to 7 times in a matter of a few decades. What does the statistic imply? Just that buying a home has become a tad difficult. Press it against another data that we, Australians, are second to none in terms of percentage of home owners.
Stats that are worth pondering over
What does this say about us? It means that we are buying our homes for sure but this act is also putting a kind of mortgage liability on us which sits with us till our retirement age (most of the times). Okay, let me seal it with another stat! Only 10% of home owners reach their retirement age without the stress of one mortgage or another. What am I hinting at here?
Buy home at a young age
In as straightforward way as there can be, let me state that we need to be more diligent about the act of buying home and tackling mortgage payments. As a first, it is crucial to set on the path of owning a home as early as we can in our lives. No points for guessing that sooner we start the sooner we shake off the mortgage liability. But that’s not the only point!
Renovation becomes easier this way
When we begin early, we are in a better position to make the choicest of renovations and mind you, each renovation or extension can be geared towards increasing the investor appeal of your home.
Factoring in Principal Place of Residence
Also, when you buy at a young age, there is a good chance you are going to use your home as your Principal Place of Residence. It is needless to say that this way you can be exempt of the capital gains tax which turns out to be the bane of many property investors.
Interest rates are very low
The interest rates today are lesser than anytime we have witnessed in the recent past. It was government’s special move to shake the construction and the property market out of slumber but there is a tether till which the government can extend this benefit without putting a pressure on inflation. This just implies that now is the best time for buying home….right before the rates make a northward move.
Have you saved enough for your first home?