Making the Transition from Rent to Mortgage

Making the Transition from Rent to Mortgage

Homeownership is often referred to as the “Great Australian Dream.” It’s a major goal for many renters and, with hard work and discipline, it’s achievable. But, let’s be clear: purchasing a house costs far more than just your deposit and monthly mortgage payments. Here’s a look at some of the extra costs you need to consider:

Additional Costs

• Mortgage Application Fees: Approx. $500
• Lenders Mortgage Insurance: Varies based on many factors
• Home Insurance: $1,200 - $2,000 per year
• Pest and Building Inspections: $300 - $800
• Conveyancing Fees: $600 - $2,000
• Stamp Duty: Varies by state (often free for first home buyers)
• Moving Costs: Varies widely depending on the move
• Council and Water Rates: Depends on where you live and the value of your home
• Home Maintenance: Depends entirely on the house you buy

And this is all before you consider any improvements or renovations.

The Upside of Home Ownership

The upside is that you’re investing in an asset that will most likely increase in value over time, all while forcing yourself to save. However, you need to be structured, disciplined and prepared. The early years can be tough on cash flow, which is why getting a mortgage, especially your first one, isn’t a simple process.

Financial Buffer

It’s crucial to have a financial buffer for unexpected costs. This will help ensure you never miss a mortgage payment. Paying off your mortgage a little faster can save you thousands in interest costs. (We have a separate article on how to do this.)

DIY Skills

Learning basic DIY skills for repairs and painting can save you thousands in trade costs. Remember, when things go wrong, you can’t just call the landlord to fix it.

Stability

One of the biggest benefits of owning over renting is stability. As long as you keep up with your payments, you can stay in your home as long as you want. It’s your house—no inspections, no landlord rules, no leases. Just a few extra expenses.

Is It Worth It?

In the end, the benefits of home ownership outweigh the challenges. With proper planning and preparation, you can enjoy the stability and satisfaction that comes with owning your own home.

Welcome Home

At JKL, we’re here to support you through every step of your home buying journey. Our experienced team will help you navigate the transition from renting to owning, ensuring you’re well-prepared for your new adventure.

Experience our JKL real estate family. We’ll put the welcome mat out for you!