Besides being part of the Australian dream, home ownership has many practical advantages over renting. First, you are building equity in your living space instead of throwing it away to the landlord. Second, you are in control of the entire decor of the interior and exterior of a home you own. Many landlords will not allow you to repaint or add wallpaper, and most will not allow you to make major revisions to a rental. Third, home owners get a sense of pride in knowing that the space they occupy is theirs. As a renter, you may feel intimidated by home ownership. It’s expensive, time consuming, and difficult. Or at least it seems that way. Here are some ideas that can help you break out of the renting cycle and get into your own home.

Savings

The amount of money you are able to save is going to make a big difference in the kind of home you can afford. If you can put away a significant portion of your paycheck into savings, you will be able to make a larger down payment on a nice house. The key ingredient here is patience, but there are some other factors that can help or hurt you on your way.

First, you have to consider where you are renting. New homes in Perth city will take a large toll on your ability to save. You should consider relocating if possible to find an area that will not drain your paycheck. Make more out of less, and you will reach your goals more quickly. The second consideration with regards to savings is your lifestyle. You need to look at your expenses and consider which ones are not critical. If you budget strictly, you will be surprised at how much money you can put away in a short time.

Building Versus Buying

Another important financial aspect of home ownership is the type of home. You can choose to buy a finished home or try to have one built for yourself. There are many aspects to consider when making the choice to buy or build.

The advantages of buying a new home instead of building relate mainly to time. The house is already there in the condition you will occupy. It’s ready to go. Unfortunately, this can lead to numerous problems. Older homes tend to be built with quality materials, but they require maintenance. If you are not handy, then you will probably need to bring in professionals for some type of renovation in the near future. Used homes tend to have some part of them on the last leg. The roof needs to be repaired. The house needs to be painted. Buying a home is more than likely going to require a great investment of time and money after the purchase.

Building a home has many advantages, too. For starters, the floor plan is under your complete control as long as it is feasible. You pick the layout and number of rooms. Do you want a garage? There’s no need to compromise. You get what you want, especially if you choose a house and land package. You can pick the materials to try and build a cheaper or more expensive home. You will receive that feeling of truly owning the home if you designed it and watched it spring to life. Finally, the advantage of owning the brand-new home cannot be understated. Likely, it will be at least a decade before any major repair work needs to be done. The roof will probably last the rest of your professional life.

Building can have a few disadvantages, as well. If you do not intend to build yourself, then you will need a good contractor. Be sure to find the best or risk dealing with a huge variety of issues during the building. In addition, you will have to find separate living arrangements during the construction of your home. If you have saved up enough money, however, both of these issues should be pretty simple to mitigate.