(It’s called the present day Time Value of Money theory… in case you’re interested – you can understand more about that here: https://www.investopedia.com/articles/03/082703.asp )
Think about it, 10 years ago a big mac cost around $3. Today a big mac is more like $6. So 10 years ago, your $1 bought you 1/3 of a big mac, where as today your $1 buys you 1/6 of a big mac… Get the point ?
What about buying a house? Time goes on, as all things do, inflation and all that sort of fun stuff means that houses just get more and more expensive. Land values go up, the cost of building material goes up and so on. In the case of the big mac example, property prices 10 years ago were less than they are today.
So if that isn’t enough to convince you, lets look at the top 3 reasons why you should buy a house today:
1. You become your own landlord
No more worrying about being able to get that pet Labrador, or whether you’re allowed to hang a picture, or worrying if your lease is going to be renewed. You become the boss – the landlord of your own manor. You can hang as many pictures wherever you want, paint the walls pink if that’s what you’re into. You can do what you like because you own the place.
2. If you build or buy a new house and you’re a first Home buyer, the Government is going to chip in $10,000.
Yes you read correctly, if you buy or build a new home, and you’re a first home buyer, you (will likely) qualify for the first Home Owners Grant. It means that the Govt. is going to give you $10,000 towards the deposit.
3. Instead of making rent payments, you’re making savings deposits.
How you ask? Well that’s easy. Every time you make a rent payment, it’s likely you’re paying of someone else’s mortgage. When you buy a home, you’re paying your own mortgage. Each time you make a mortgage payment, you owe less than you did the last time you made a payment, because well, you’re paying it off. AND In the meantime, the home you are paying off is probably going up in value. So really it’s very much like a savings account. The choice is whether you’re paying into someone else’s savings account or your own.
With that in mind, how will you spend your $1 today ?
Check out where you’re currently financially at and see what it would take for you to be able to purchase your own home – Click here