Transition from Renting to Buying

Wednesday 06 Jun 2018

As life progresses, we face different real estate choices. Possibly the biggest real estate decision we make is deciding to move from renting, to buying a home. Here are three important criteria to consider:

  1. Getting a loan will be easier if you are permanently employed in a full-time position. Banks are getting increasingly more strict on home loans, so if you’re a contract worker or have casual work, you may find it takes longer to receive approval. Sometimes even the industry you are in is taken into consideration by the bank. Then there is the matter of being a first-home buyer, you may represent a greater risk than returning home buyers or investors. That’s because if you lose your employment and can’t meet your loan repayments, you won’t be able to draw on equity in the property to stay afloat.
  2. Once you have determined that your job is secure and you have adequately saved up for all the purchase costs, then make the jump as soon as you can. Property always moves upwards over the long term, so don’t make the mistake of waiting for things to become more affordable.
  3. Now comes the third consideration — choosing the right location. Obviously there is the main consideration of whether the area is suitable for your lifestyle and needs, but you also want to set the right investment foundation. Location is a critical factor for value, simply because while all properties grow in value over time, some will grow faster than others.