| Making the Transition from Rent to Mortgage

Home ownership is often referred to as the “Great Australian Dream”.  This is a major goal for may renters.   It is achievable – but not without hard work and discipline.

To be clear, purchasing a house costs far more than your deposit and your monthly mortgage payments. 

Some of the extra costs include:

  • Mortgage application fees – approx. $500
  • Lenders Mortgage Insurance – depends on many factors
  • Home Insurance – $1200 – $2000 /yr
  • Pest and Building Inspections – $300 – $800
  • Conveyancing fees – $600 to $2,000
  • Stamp duty – varies state to state (often free for first home buyers)
  • Moving Home – varies wildly depending on the move
  • Council and water rates – depends on where you live and the value of your home
  • Home maintenance – depends totally on the house you have bought
  • And this is all before you want to do any improvements or renovations

So as you can see, there are a lot of added costs in comparison to renting.

The upside is you are being forced to save all the while paying off an asset that most times will increase in value.

But you need to be structured, disciplined and prepared.  Often, especially in the early years in can be tough on cashflow.  This is why it is not a simple process to get a mortgage.  Especially your first one.

It is important that you have a financial buffer that you can fall back on for unexpected costs. This will also help ensure you never miss a mortgage payment.

If you can pay your mortgage off a little faster you can save many thousands in interest costs.  We have a separate article on how to do this.

It is great idea if you learn to be at least a little handy with tools and basic repairs and painting etc.  This may save you many thousands in paying tradies.  Remember when things go wrong you cant just call the landlord to get it fixed.

One the biggest benefits of purchasing over renting is “stability”.  As long as you can stay on top of your payments, you can stay in the same home as long as you want.  It is your house, no inspections, no landlord rules, no leases.  Just a number of extra expenses. 

But in the end it is worth it for all the benefits.

Disclaimer:  Although all care is taken.  We do not give any warranty whatsoever to the accuracy of any content.
This is not meant to be financial or professional advice and is only of general nature.  You must seek professional advice before taking any actions. The above information comes with no warranties whatsoever.  We take no responsibility for any actions you may or may not take. All content is of general nature only and is NOT to be taken as advice whatsoever

Martin & Austin
Waldhoff

0422 426 065
MWaldhoff@areaspecialist.com.au

336 Main Road,
Glenorchy 7010 TAS

 

Martin & Hans recently welcomed the addition of a 3rd generation Waldhoff, Austin, into the team. Inviting him to learn from their 40 years’ experience in the real estate industry. Austin is keen to establish himself alongside these two reputable & knowledgeable representatives of the Hobart property market. Acting as their protégé & personal assistant for the time being as he strengthens his skillset regarding client management, negotiations, and legal procedure.

Martin brings 15 years of experience to the table and prides himself on negotiating the best outcomes for his clients. Empowering his vendors with the most modern marketing strategies available during the listing and selling of their property. Being a strong supporter of local produce and community growth, Martin is a member of the New Town Community Association & other groups. He’s down-to-earth, literally & figuratively, enjoying spending time in the garden as much as inside your home to help evaluate its place on the market.

Hans has been in real estate for 25 years. Receiving multiple awards as Tasmania's No. 1 Salesperson during his reign as 'King of the Hill' in Sandy Bay. Previously a civil engineer and accredited valuer in Germany, Hans has a deeper understanding of property than your average agent, and you'll find his insights invaluable whether you're buying or selling property in Hobart. Now over 80 years old, Hans’ enthusiasm for real estate has never waned and he continues to prove himself as one of PRD’s top salespersons monthly, effectively bolstered by his son & grandson.

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