Buying a house in Australia is becoming more accessible and affordable to first-home owners, becoming more favourable than renting.
1. Buying VS Renting Costs
Aussies latest Buying vs Renting report discovered that it is more affordable for Australian’s to buy rather than rent in over 60% of Australian suburbs.
In fact, some suburbs, some homeowners save up to $675 in their monthly mortgage payments compared to if they were renting. For example, the Perth suburb Coolangup, loan repayments can be $597 less than the cost of rent.
2. Government Grants
The second benefit of buying vs renting is the unique opportunity in the current market to purchase properties due to the several state government grants.
Buyers can take advantage of several state-based grants such as the First Hone Loan Deposit Scheme which allows a buyer to purchase a property with as little as a 5% deposit and no lenders mortgage insurance. This gives eligible first home buyers on low and middle incomes support to enter the property market and purchase their own home.
First-home buyers also have access to the HomeBuilder Grant and the First Home Owners Grant which could save $25,000 as well as stamp duty savings.
3. Historically Low Interest Rates
Another benefit of buying VS renting is the current interest rates.
Australia are experiencing record low interest rates following back-to-back cuts by the Reserve Bank.
Reserve Bank have indicated a prediction that interest rates will remain at a historic low well into 2023, giving home buyers a sense of security and consistency in the future.
How we Can Help
Aussies have used these grants and record low interest rates to get into their dream homes sooner, or renovate their existing home. We, at Finance Mutual Australia, have personally helped dozens of our clients take advantage of these opportunities. We are experts at finding the perfect loan for your financial and lifestyle needs. If you would like to use HomeBuilder to upgrade or build your home, please do not hesitate to get in contact with us.