The benefits of purchasing your own home

By the resi financial blog team, 15 November 2013

The benefits of purchasing your own home

Purchasing your own home is something that most Australians will do during their lifetime. While many people will rent property during the early years of their independent lives, eventually most people will take out a home loan and secure their own property.

There are a number of benefits to purchasing your own home as opposed to renting, which can often come with a number of restrictions and limitations as to what you can do to the property, and how you live your life..

Household freedom

Owning a home gives you free reign over your own domain, allowing you to make any changes or renovations you wish..

When you live in a rental property, you'll need to gain the permission of your landlord to make any alterations to your home.

For example, something as simple as hanging a photo on the wall. Living in a rental property, it's ill advised to simply nail a hook into the wall, due to the long lasting damage this can cause.

However, living in your own home, you can make modifications - big or small - without any need for authoritative permission, as long as they are within council regulations.

Lifestyle stability

Owning your own slice of property can provide your life with a huge degree of freedom, knowing that you have somewhere to call home.

Regardless of how long you've been a tenant in a property, there could always be a little uncertainty about your living conditions.

For example, the landlord could decide to increase the rent to a point that you can no longer afford. Or perhaps you simply can't renew your lease for any reason, forcing you to pack up your belongings and life, and find new accommodation.

Getting into the driver's seat of your living situation can help you to avoid these issues from coming up, giving you more control over your life.

Economic benefits

If you're going to make regular payments for accommodation, what would you prefer - putting money into someone else's pocket, or investing in our own biggest asset?

Your landlord is the only one to benefit from your rent, which is money that you will never see again. Whereas if you're paying off a home loan, you are actively working towards securing a tangible asset for you and your future.

As you make repayments, you will also begin to accumulate equity through your loan. This can be accessed later in the lifespan of your home loan, which can then be put towards any use you may have for it.

Whether you're hoping to take a well-deserved vacation, purchase a new vehicle, or put that money towards further property investment - making your mortgage work for you in the future is one of the biggest benefits of obtaining finance.

Categories: Home Loans, Personal Finance