Tag Archives: buying
Are you ready to be a homeowner?
There is certainly no doubt that everybody wants to own a home. To not have to pay rent, to have some equity, and, hopefully, to have something that actually builds value over time, perhaps providing you with a sufficient fund for when you reach retirement. Perhaps most importantly, however, is that it is a home that you own.
Home ownership is a dream for most people, there is no doubt about that. Today, that dream is more accessible to more people than it has typically been in the past. However, not everybody is ready to own a home.
There are a lot of things to consider before taking that first step towards home ownership. Buying a home can be a great experience, but it is always a large responsibility, so you really need to stop and consider whether or not its a responsibility that youre willing to take on right now.
In an effort to help you reach that decision carefully, well provide you with a simple checklist for the potential new home owner. Consider these to be some basic questions to ask yourself:
1. Am I ready and able to settle down?
“Settling down” might not mean “permanently”. Its certainly possible to buy a home, sell it, and move within a few years time. However, you need to consider whether or not your lifestyle really accommodates home ownership. Do you spend most of the year travelling for work? If so, buying a home might not be top priority. Rather, it may be wiser to start saving and investing so that you can afford a home when youre ready.
2. Do I want the added responsibility of paying off a mortgage?
To be perfectly frank, it is possible to arrange a mortgage deal that will have you paying less per month than many people pay simply to rent an apartment. However, the consequences for failing to make mortgage payments on a timely, regular basis can be more severe than the consequences for being late making rent on an apartment. Simply put, a home owners credit is on the line.
3. Can I afford a home?
The recession and the housing crisis have been difficult on everyone. If you are one of the many struggling to make ends meet, then we refer to point two: Taking out a mortgage will only compound your problems, not solve them.
We dont mean to scare anyone away from pursuing the dream of buying their first home, we simply want to make clear the weight of the responsibilities home ownership carries.
All of this considered, if you are in fact ready to become a home owner, then by all means, do a little research and find a home loan deal that will work for you. Just bear in mind that the key word there is research. Once youve decided to become a home owner, you still have a number of decisions lying ahead of you, so make sure to educate yourself and make the choices that will help you achieve your goals.
To Buy or To Rent Sydney Office Space? Five considerations to help you decide
Despite the economic downturn, the Sydney commercial property sector is still looking healthy. As Australia looks poised to come out of the financial slump strong, businesses are taking advantage of current depressed property and rental prices and looking towards the future.
The option of buying or leasing commercial property is certainly something that many small businesses will consider. The decision is something that will come to greatly affect the business in the long run and there are many questions to ask. The individual needs of your business will ultimately determine the best option for you, but here are a number of things that every small business should think about:
Upfront Costs: For some businesses, the most limiting factor to buying office space is the large upfront costs. Down payment on typical Sydney real estate is usually about 25%-30% of the total cost, in addition to fees, inspections and other expenditure. However, if you’re in a position where you can afford to, purchasing a commercial property can pay off in the long run and greatly reduce your future overheads.
Variability: Obviously, one of the most attractive incentives for buying is knowing more accurately the costs you will incur for a certain amount of time. Leasing leaves many businesses vulnerable to the whims of the property sector with some leases pegging rental prices to the Consumer Price Index. However, many areas, such as Grade A office spaces in Sydney CBD, experience much less market fluctuation. Consider the variability of the area and grade of the property you’re looking at.
Appreciation: If you decide to purchase commercial space, you’re adding a valuable asset to your business with the potential for appreciation. Of course, this means you’ll need to do some heavy research to find a property that has good potential and will suit your business’s needs.
Depreciation: With appreciation, comes depreciation and tax considerations. Costs incurred from repairs and renovations to tenanted property are handled differently than private property. Lease holders can claim improvements immediately while owners may be required to depreciate their expenses over time.
Potential Growth: Finding a space that suits your business is very exciting, but what about the future? For many newer businesses, leasing could be the preferred option as it allows them to expand their more readily and with fewer limitations. Keep in mind that if you do outgrow your space, you can always lease the premises to help with the cashflow. Or you can consider initially purchasing a larger space and leasing part of the premises to another business to help cover some of the overheads.
These are just some of the many considerations that will help you decide if buying or renting is right for your business. An attorney or financial consultant will also be able to provide more information that is more specific to your business needs.