Buying a property
Pros of buying a property
Putting down roots on a property provides security and a direction in life. You can also personalise where you live, and over time, the repayments will bring you closer to home ownership. The property may also increase in value over the years, and you may also be able to use the equity in your home to invest in another property or pay for renovations.
Some people also like the discipline of regular mortgage repayments as a way of forced savings, with your savings paying off an asset you will eventually own outright. Part of the monthly repayment (the principal) is going towards paying off your own property, rather than your rental provider’s property.
Just make sure you know what you’re buying by booking in a property inspection before purchasing. Property Inspections provide comprehensive safety reports on potential risks and hazards in your home or investment property.
Cons of buying a property
To start with, you’ve got to save up for the deposit, which in the current market, can take years. You are also then locked in to covering the mortgage for years to come, which means that taking time out of the workforce for a holiday, for example, might not be an option available to you.
There’s also a range of other costs, including council rates, maintaining the property and repairs. There’s also no guarantee that your property will increase in value, depending on what and where you buy.
And if you get in over your head financially can be a major problem. If you can’t cover the mortgage every month, you risk the possibility of repossession by the bank.