So what does it mean to buy a house these days ?

The question is a quite a broad ended one.

Let us start at the beginning as to why we buy a house?

These are the good reasons for people to buy a house.

• It is a roof that is defiantly owned by you.

• You have something to your name.

• It is a centralized location in which your immediate family knows about.

• It is used as a status symbol.

• It ties down your money to something that is physical and can hold its value ( to some extent).

• It is a home in which you raise your family in.

And so on……  

Why it is hard or difficult to buy a house to live in ?

• It is tedious to go to auctions and open house places every weekend. (Time consuming)

• It takes a significant amount of savings to even put a dent into your home loan deposit.

• Unstable family issues (divorce and separation issues).

• Interest rates are subject to change every month (RBA cash rate).

• Other people driving you out of the market (eg. foreign investors).

• Annoying neighbors.

And so on….

To the top 5% of the population that has the wealth this is not so much of an issues as it can be quite easy to buy and lease all the time. 

However those who are of middle-class it can be quite a challenge and a significant part of one’s life will go towards servicing the debt of the home.

Which brings another question.

Is it worth it to get a mortgage for a home?

The answer yes and no.

Why two answers?

I will give you the answer in the next blog.

TCM