Bathurst Blog

A decision to buy a first home can be a worry for people on limited budgets or those who have been renting for many years.  In addition to rent plus energy and water usage, buying means rates, insurance and maintenance expenses to consider.

Many prospective home buyers might be concerned they will have less disposable income during the initial years because of loan repayments sometimes being more than rent, but as their income and equity in the house increases, the financial advantages become clear,

Renting suits the lifestyle of some people, but while a tenant is subject to escalating rents, the home buyer’s mortgage is like a compulsory saving scheme, with each repayment taking him or her one step closer to owning a debt-free asset. Real estate offers a particularly secure hedge against inflation and, in addition, the capital gain an owner makes on a home is not taxable provided it’s the home they live in. Even in times of stagflation the money pout into loan repayments is not lost cash; it’s reducing the mortgage.

Another advantage is that with security of tenure, the home owner has greater control over living environment; the freedom to make alterations, or improvements that not only improve liveability but increase value of the property. It can also be an incentive to caring for lawns and gardens             

Raine & Horne Bathurst are experienced and ethical in all of buying, selling, letting and management. If you have a matter in mind feel free to contact us at any time on 02 6331 6555 or come in and talk to us.