The Great Australian Dream lives on. A recent study shows that although buying your own place is more difficult than it was decades ago, it is still a more practical choice because of the rewarding property value you can reap and enjoy after thirty years.
The Great Financial Reward of the Great Australian Dream
The study looked at the cost difference of buying a house in 1984 and 2014. Experts found that property value has gone eight times higher than 30 years ago. The researchers further explained that when you buy a property priced at $580,000, it would be worth $4.6 million in 30 years’ time. Financial experts are encouraging Australians to buy houses before the prices go up even further.
The Financially Savvy Home Buyer
To make the most of the financial rewards of the Great Australian Dream, though, you have to develop certain savvy financial habits. Here are some things you need to do to become a smart and financially fit homebuyer:
• Know the costs of buying a home. A financially savvy home buyer understands that the cost of buying a home does not only involve the property’s price tag. Be sure to consider fees involved in loan application, mortgage insurance, pest and building inspection, and document preparation. According to Perth agents from AdvantageSettlements.com.au, knowing about settlement fees must also be part of your plan. Prepare for costs involved in title insurance and legal search.
• Determine what you can afford. Before going house hunting, you need to sit down, contemplate and think about what you can afford. Think about your current lifestyle—spending habits, income and all expenses. Having a clear picture of your budget will help you narrow down the types of properties you will be looking at.
• Create your savings account. Most lenders will ask for documents proving your savings history when applying for mortgage. Open a savings account. This will help you with preparing the finances for your dream home.
• Clean your credit history. Tidy up your credit history before you even think about buying a property. Make it a financial goal to clear debts. Evaluate your accounts and close those that you do not need.
Make the Great Australian Dream a reality for you and your family. Follow these tips and you will become a financially savvy home buyer in no time.