Many wonder what the best time is to buy property; or when to buy your first house or land to build a house. Whilst building or buying is another discussion, what truly is a good time to buy that first house of yours? Can you do it as soon as you have a good first job? or when you are getting ready to marry and build a family? How about much later in life when you have a family of three or more and you need more space?
It is true that renting property is the easiest to do when it comes especially to maintenance. You also won’t have to wonder or bother about paying taxes and security of the premises as long as the landlord is there. however, having your own property- immovable property in that case –quite early in life can also bring in some advantages. One is that you don’t have to go around hunting for another house or apartment when the current one is due. Of course, paying a monthly rental is not required either. Some tend to think a monthly payment is a small cost for the hassle one has to go through to build a house or even engage the legal services of a right conveyancer Ballarat to buy an already built house.
Why not rent?
Even with the ease of renting a property, did you think of what you are losing? Most of the time, you will have to pay a deposit when renting a house. In addition, a monthly rental must be paid. Considering the financial principle of time value of money, what you have now is worth more than the future monies you may have (or not have!). in that case, what you can now save, not spend, is the worth bit. If you buy a house and invest in it to generate an income early in life, apart from the savings you make, there is a higher sum of money you can save in the financial sense.
Tax, interest and more
Consider the residential sales Ballarat that are available for you. What you spend for a month on the rented house, could be added to pay the monthly mortgage if you go for one of those. Also, the amount you will be eligible for deducting as tax as result of the interest paid on the mortgage is a considerable amount as well. As a bonus you can rent out or use for Airbnb like service, part of the house which will give you more money. Now calculate the actual amount you have to spend to pay the mortgage. Does it seem like a good idea to buy a house early now? Saving now is the smart thing to do. Try to see ways you can do it rather than waiting till late.