If you’re stuck in a cycle of renting and feeling like home ownership is only a distant possibility, you’re not alone. 

From saving a deposit, to securing finance at the right interest rate, and finding a property that suits your needs and budget, a lot needs to come together to make the dream a reality. 

However, is there a perfect time to buy a house? If so, what makes one time better than another – is it solely down to having all your ducks in a row? The answer to this may surprise you. 

In this guide, we’ll take a look at when is the right time to buy vs. rent and why it could be much sooner than you think. 

 

Benefits Of Buying Property

While it is easy to think that renting is more affordable than owning your own home, this is generally only true in the short-term. It can seem a little financially stressful to take on a mortgage at first but in reality there are so many benefits to buying that easily offset this including:

• Stability
• Freedom to change or renovate
• Benefit from increases in value over time
• Option to rent your home out as an investment
• Ability to use equity for further investing
• Chance to utilise government grants for first home buyers

 

5 Signs It May Be Time To Buy

So when is it the right time to buy? Here are five signs you may be ready to take the leap. 

1. You’re Struggling To Find A Rental 

Across Australia, rental properties are in short supply. From queueing up around the block simply to view a property, to having to bid above the advertised price, securing a rental is fraught with difficulties. 

Buying your own home ensures you enjoy stability and can avoid being at the mercy of landlords and the ever-rising rental prices.

2. Your Rent Is Equivalent To A Mortgage

As touched on above, rental prices are at an all-time high. For some tenants, their weekly rent may even see them paying more than they would if servicing a mortgage. 

If your rent is continuing to rise or is already at an all-time high, it is well worth looking into your borrowing power and what a mortgage would cost you by comparison. After all, wouldn’t you rather be paying down your own home loan than someone else’s?

3. You Have Steady Employment

If you have consistent employment and can demonstrate this through the provision of 3 to 6 months’ worth of payslips, you may be in a position to buy. 

While renting offers great flexibility at different times in life, if you are settled in a job and focused on advancing in your role, buying can make a lot more sense than renting. 

4. You Are Financially Healthy

If you have minimal debts and a great credit history, this can indicate a good time to buy. Before you splash out on a brand-new car or other big purchase, consider checking your loan eligibility instead. 

Even with some debt, you are not automatically excluded from securing a mortgage. So long as you are consistent with your repayments and show a responsible approach to money, many lenders will be happy to accept your application for review. 

5. You Crave Stability 

If constantly having to move or stressing about whether your lease will be renewed or not is becoming more and more difficult to navigate, buying is a good move. 

Being your own landlord means no more inspections, no more dealing with property managers, no more struggles to find the right rental and more. You can put down roots and relax while also creating a more stable financial future.

What If I Have No Deposit Saved?

One of the biggest myths that stops many renters from buying a home is that they must have a deposit saved. 

In reality, several factors are considered when lenders review your suitability for a mortgage. 

While having some savings or evidence of good savings habits can go a long way towards helping you secure a mortgage, there are ways to achieve this with little to no deposit. 

Whether through the support of a guarantor or a specialist loan, if you feel ready to buy but have no deposit, it is still worthwhile investigating your lending potential. 

 

Are There Downsides To Buying Over Renting? 

Long-term it is almost always better to buy than rent. However, some added costs come with buying a home that should be considered before deciding if buying is right for your situation. 

Ongoing expenses including: 

• Council rates
• Home and contents insurance
• Repairs and maintenance
• Water/sewage service fees and more

However, compared to continued rental increases, repeated moving costs, managing bond payments, end of lease cleans and more, buying still offers greater financial benefits than continuing to rent. 

Ready To Buy? Why Not Build? 

At Stop Renting Perth we work to dispel the myths around home ownership and are passionate about helping everyday Australians buy their own home. 

Not only can you wave goodbye to renting, you can enjoy living in a brand new home. With over 70 home designs to choose from and locations available all over Perth, there has never been a better time to consider building. 

Building allows you to make zero compromises on comfort and avoid buying an established, but outdated property.

Our tailored house and land packages ensure you gain full advantage of all available government grants and are intended to help you escape the cycle of renting sooner. 

With our proven strategies and roadmap for success, we can support you to become a homeowner even with little to no deposit saved. 

Our financial specialists review a variety of factors when determining your eligibility and having a deposit is only a small component of this.  

Speak with our team of dedicated experts today and learn how you can stop renting and buy a house in record time. 

Arrange your obligation-free consultation using our booking calendar, or give us a call today at 0402 513 446.