Buying a house can often seem more difficult than renting especially if you live in the heart of the city. Putting that initial 20% deposit together can often seem like a more difficult task than it is worth. However, with falling house prices and new government schemes it might be a good time to reconsider buying a home. Here are some of the reasons why it’s a great time to purchase a new home.
Falling House prices
With house prices continuing to fall at a rapid rate a mortgage may now potentially be lower than the amount you are currently paying for rent. This gives you extra funds to then reinvest into something else such as stocks which have also fallen heavily. Additionally, once you pay off your mortgage you won’t have to pay for rent or loan repayments and will have much more money to invest. This makes buying a home much cheaper in the long term than renting and also much more rewarding.
You Can Sell and Make a Profit
Even if you were planning to buy a house to live in permanently, that doesn’t stop you from selling it for more money than what you bought it for. Properties can also be bought as an investment if prices are likely to grow in the future whereas renting will never give you a return. With property prices at the lowest they have been for some time and likely to fall even further now is a great time to buy at the bottom. Then once the market recovers you will be able to sell your property for a much higher price than you bought it.
With the property market crashing and property prices likely to drop further there has never been a better time to buy a new property.
If you would like to learn more about why now is a great time to buy a new property and how a broker can help you, please get in touch with us today.
Why Break Free Home Loans Melbourne?
Are you stuck in a home loan that isn’t working for you? Do you feel like you’re paying too much interest or not getting the features and benefits you need? Break Free Melbourne Home Loans are here to help.
We are mortgage brokers based in Melbourne, and we work with a range of lenders to get you the home loan that best suits your needs. We’ll take the time to understand your situation and find a loan that meets your borrowing requirements and gives you the features and benefits you want.
We’ll also negotiate on your behalf to get you the best possible interest rate. And because we have access to a range of mortgage lenders, we can often get you a better deal than if you went to your bank directly.
Should you consolidate your debt?
If you’re like most people, you probably have some debt that you’d like to consolidate. Should you do it?
There are a few things to consider before making a decision. First, what kind of interest rates are you currently paying on your various debts? If you can get a lower interest rate by consolidating, it may be worth doing.
Another thing to consider is whether or not you’ll be able to deduct the interest on your consolidated loan. This can save you money come tax time.
Of course, there are also risks associated with consolidation. If you consolidate your debt into one loan and then lose your job or have some other financial setback.
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