Australia has one of the highest rates of home ownership in the world with, according to the Australian Bureau of Statistics, 69% of households being owner-occupiers. There are many good reasons for this and you should join the majority by enjoying the benefits that new build homes can bring.
When you own a property, providing you keep up with mortgage payments, you can choose how long you want to stay there. This contrasts with the experience of tenants who may be on relatively short rental agreements and may have to move out earlier than they would like.
Tenants may be asked to move for several reasons, typically because the property is being sold, because major repairs are needed or due to a change of use by the owner. As a result, the Australian Housing and Urban Research Institute found that 39% of renting households moved three or more times in the five years to 2008. This not only causes stress and disruption but incurs significant moving costs.
2. Freedom and Independence
People who rent properties are generally governed by tenancy agreements that restrict what they can do. If you own your own home, however, you’re only limited by local council regulations.
You’ll be able to keep pets and make the place look exactly as you want it so it’s a real home. You can also renovate and extend the property so you’re adding to its value. This will ultimately benefit you rather than your landlord.
3. A Valuable Asset
Any improvements you make to the home you own will be reflected in an increase in its value. This will be in addition to the normal increase in property values that are generally reckoned to double Cairns house prices every ten years.
If you choose new houses to buy wisely, look after your property and move selectively to progressively better houses, you can expect to make an appreciable profit over several years. This then gives you the opportunity to take some of that money later in life by downsizing to a smaller and cheaper property so that you can have something for retirement or other spending.
4. Avoiding Wasted Money
Although some people believe renting is cheaper than buying, this doesn’t always take into account the full financial picture. Any money you pay in rent is effectively helping the landlord to buy the property and is dead money to you. Property ownership, even taking into account interest on the mortgage and maintenance costs, is a positive investment and will always show a profit if done correctly.
5. Other Financial Benefits
If you’re a first-time buyer, you may be eligible for a first-time owner grant if purchasing a new property. This can be worth up to $15,000 tax free and so makes a significant contribution to your costs.
When you come to sell your house and move on, there will be no capital gains tax to pay providing it’s always been your primary residence. So any profit you make is totally tax free.
As established Cairns builders, we have a wide range of properties for all types of buyers. So you can take advantage of all the benefits of home ownership.