MAKING THE TRANSITION FROM RENTING TO BUYING

If you are currently renting a property but have been thinking recently that it might be time to buy, there are many things you will need to consider and several important steps to take.

Firstly, decide whether or not you want to remain living in the area you're currently residing in.  If you do want to stay, then you'll need to get a feel for the market and take a good look at what properties in the area have sold for recently.

If you want to move, start investigating other areas that might be more suitable or more affordable for you.

Look currently at your current job situation.  Is it stable?  Will you be staying in town or is there a possibility that you will be transferred for work in the next few years?  How far do you currently live from your job and how far are you prepared to travel each day to get to work?

Next, speak to a bank or finance provider or use a mortgage calculator to determine how much you are able to borrow to buy a home based on your current circumstances.

When comparing loan repayments to your current rental payments, keep in mind that when you own a property you will be responsible for additional expenses such as council rates, water rates, ongoing maintenance and building insurance.

If you've done all the calculations, considered where you want to live and determined that home ownership is what you want, then go for it.  If you want to buy a property and you don't, chances are you'll regret it.

On the other hand, if the thought of mortgage repayments or extra maintenance costs make you weak in the knees, then its probably a good idea to continue renting ..... for now anyway.

(Information courtesy Quartile Research)

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