5 common myths people have around homeownership
Homeownership is one of those aspirational Australian dreams. But, there are a few misconceptions floating around that may deter a perfectly suitable homebuyer from jumping into the housing market. Here are 5 common myths around homeownership.
Myth #1: Home inspections are 100% comprehensive
Home inspections aren’t fully comprehensive. After all, the inspector is human. It’s important to supplement the home inspection with your own observations. In fact, follow the home inspector and note down your own findings, ask them questions and allow them to explain their reasoning.
Myth #2: Home improvements increase the value of your house
Improvements and renovations have the potential to increase your home’s value. However, not all home improvements will increase your home’s value. For example, if your fence or roof is broken, repairing it will only bring your home up to the minimum standard in value. It’s important to know the difference between general repairs and renovations that add value.
Myth #3: It’s better to rent before you buy
Renting versus buying is contingent on the individual. Long-term, buying may be the best decision, however, owning a home comes with the additional responsibilities and costs involved in repairs, maintenance and upkeep. If cash flow is tight, renting may be the best option for some. Renting versus buying have different benefits depending on the state you live in.
Myth #4: Renovations are quick and easy in your own home
With the increasing popularity of DIY home renovation shows, it can seem like no big deal to renovate your home. Renovations, especially if you’re doing it all yourself, can be stressful and tiring. Things usually run over budget, and there are usually some unwanted surprises along the way, that you forgot to account for. Before you go through the effort of renovating, make sure you’ve planned well, have a budget, and know how your renovations will increase your property’s value.
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Myth #5: You need a 20% deposit before you can get a home
It’s a misconception that you have to have the 20% deposit before you can afford to acquire your home. This isn’t true. There are many options for people who have a small deposit to get into the housing market. One option is getting a guarantor, another being to use your superannuation. It’s important to check with your lender and go over your options.
Get more insights with a lending specialist
At Mortgage House, we’re no strangers to the homeowner’s journey. It’s a long (but rewarding) one.
But don’t worry, we can help with that. If you’re thinking of investing in property, you can contact us for advice about the best options for you when it comes to your mortgage. The cost of your mortgage can drastically affect your financial planning, so it pays to speak to the experts about it.