Why It's Smart to Invest in Residential Real Estate
Buying a home is one of the smartest financial moves a person can make. Whether you’re a first homebuyer or you’re looking at buying a residential investment property, the benefits of buying a house and land are many in both the short and long-term.
In the modern era, homeownership is essential for anyone aiming for financial freedom and the opportunity to one day retire. But there are also many benefits to look forward to now. Like feeling more optimistic about the future by investing your earnings in a home of your own rather than repaying your landlord’s mortgage. That’s a major reason why many people get so excited about homeownership, and there’s so much more to get excited about. Put simply, buying residential property is a smart choice. Here are four top reasons why.
House Prices Over Time Only Go Up
When you buy a quality home in a good location, you can rest assured that the price will only go up. Naturally, the market fluctuates for a variety of reasons and there may be times when it isn’t ideal to sell your home. However, in the long-term, all property prices increase and you can expect your home to be worth considerably more in the future, so you’re building equity every month.
This is one of the most prominent reasons why buying a home, either one to call your own or a home to rent to tenants, is widely considered one of the safest possible investments. Property price increases are a trend Australia-wide, with some local markets better suited to quick gains than others. This is especially true of inner-city and high-growth areas.
Financial and Life Stability
In addition to building ongoing equity in a value-increasing investment, homeownership also provides greater financial stability over renting by eliminating the need to move. Industry studies show that around 40% of all tenants move at least 3 times every 5 years, which inflicts a huge financial strain due to the moving costs involved. Along with improving financial stability by not having to relocate and avoiding moving costs, homeownership provides life stability and enables homeowners to put down roots in their local community.
Why you Should Act Now
With most Australian households at increasingly greater financial risk than in the past, the opportunity to build long-term financial wealth through homeownership is an excellent opportunity. The Government recognises this, which is why they offer financial incentives like the First Home Owners Grant and the First Home Loan Deposit Scheme. These are fantastic incentive schemes that can help young Australians moving out of home for the first time get into a home of their own quicker and avoid the many costs of renting.
McDonald Jones is a leading first home builder with house and land packages available in many states and territories. Visit your nearest display home to experience the quality of our homes in person. Alternatively, contact us online or call 1300 555 382.
