Owning your own home is a proven pathway to long-term financial well-being and allows you to plan for the future, which is important, especially if you have a family to look after.
If you’re tired of renting and would like to become a new homeowner you will need to take some things into consideration.
Work out your finances
When it comes to home loans, there is a big difference between what you think you can afford and what you can get approval for. That’s why it’s important to get a better understanding of how much you earn and how much you spend.
Ensure you have pre-approval first.
There is a bit of misunderstanding in relation to pre-approval. Pre-approval only gives you an idea of how much a bank will be willing to lend you. It allows you to know the maximum amount you can spend on a house, but that’s about it. Pre-approval is often conditional on a successful credit check. If your circumstances change, it’s possible that your pre-approval is no longer valid.
Once you know the home you are going to build the bank will require a bank pack, this includes your homes council approvals and your contract so that the bank can value the property, you will need to outlay some money upfront before the bank will give you a loan so having some savings is very important.
Construction finance can be complex and the amount of deposit required will vary depending on the lender you approach. Talking to a lender that specialises in construction loans may be a good starting point, because if they do not understand a construction loan, they are only going to confuse the matter.
When it comes to building your first home you need to get your priorities straight.
Make sure you’re clear on what is most important to you, so we can help you work out what type of home will work with your budget, keeping in mind that your first home will not necessarily be your dream home but it will start you on the path to owning that dream home.
What changes when you’re a home owner.
Saying goodbye to landlords and moving out of your parents’ home means more freedom. As a home owner you can create spaces for your needs and make your home truly yours.
But owning your own home also comes with different responsibilities. You have new bills to pay and council rates due. So, it’s important that you’re ready to manage these and plan ahead. However, the investments you make in your new home will reap rewards.
Money that would ordinarily be paid into rent now goes towards paying a mortgage, reducing your debt.
As debt reduces and home prices invariably increase over time, equity is created and wealth is accumulated.
The current low and relatively stable interest rate environment allows you to reasonably budget for your monthly mortgage repayments. Your landlord can’t suddenly increase your rent when your lease is up.
It also means Increased stability, no more packing up and having to relocate if your landlord chooses to sell their investment property.
Your home is your own to do with exactly as you wish!
You’re paying off your own home, not someone else’s.
And most importantly as a first home builder you most likely have access to the $15,000 FHOG and the $25,000 building grant that is $40,000 that that you don’t have to find and added to the equity of your home.
So escape the rent trap and contact JAC Homes today to start your new home journey.