How to move from renting to buying

OWNING a home is the great Australian dream and for most Aussie homeowners, many started out in a rental.

Renting a home is usually the first step for many homeowners before they make the leap from renting to buying.

But just how do you move from renting to buying?

Let’s take a look…

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1. Cost

Firstly, making the decision to move from renting to owning depends on the cost of a rental versus what it will cost you to service a home loan.

In the current climate, many home loan repayments can be “less or equal” to rental payments, which is attractive to many tenants looking to become homeowners.

And initiatives like the Queensland Government’s first-home buyer scheme is just another incentive for some tenants to make the move from renting to buying.

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2. Availability

Buying also depends on availability.

In a now inflated market, many wanting to take advantage of the increase in property prices are getting into property investing, snapping up good first homebuyer deals.

While available land to build on is also putting a brake on the market.

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3. Interest rates

The record-low interest rates are another big incentive for tenants to make the move from renting to buying.

But how long low interest rates are going to last is an unknown.

There has been some interest rate movement recently in fixed rates with some banks so when it comes to making the move from renting to buying, shopping around for the best home loan is a must.

And seek professional financial advice before locking into a fixed interest rate for a fixed period.

Finally, one last tip…

If you are ready to move from renting to buying, find out a lender’s current time frame for processing home loans applications as some banks can take upwards of two weeks to pick up an application.