How to buy a home without a mortgage
With the average Australian household borrowing an average of $1,300 a year, the prospect of a home purchase is often seen as the only way to keep their home afloat.
But the reality is, if you don’t own a home, then you’re probably not getting what you pay for.
And you might not even be getting the best deal.
That’s the takeaway from the latest data from real estate market research firm BMM.
BMM’s latest survey of 6,200 buyers found a median price of $2.15 million for a home bought without a deposit.
That means a homeowner with $1.5 million in savings would pay $2,300 for the same property, with no mortgage.
This is far below the average home price of the country, which is currently around $4.2 million, or $2 million a year.
In other words, you’d be paying $3,000 a year for a similar property.
BMA chief economist and co-author of the BMM survey, Mark Stephens, said the median home price was an underestimate because there was a lot of variation in the market.
“There is so much more variation than the average,” Mr Stephens said.
“It is a bit of a chicken and egg situation for the market.”
If you’re looking to buy, the key factors to consider are affordability, equity and the property itself.
“The most important thing is you don,t have a mortgage, you don”t own a house,” he said.
While the median house price in Victoria is now around $2million, it is the lowest in Australia, with the average house price of about $3.3 million.
In NSW, the median price is around $3 million and is well below the national average.
The national average is $5.3m.
The ABS and BMM said that home ownership was a key factor in the home buying process.
BMRM research also found the majority of Australians were planning to buy more than one home. “
You can’t just be a homeowner, but you have to have equity,” Mr Andrews said.
BMRM research also found the majority of Australians were planning to buy more than one home.
Of those surveyed, 55 per cent had an interest in buying multiple properties.
“When you look at affordability and equity and your ability to access funds to finance the purchase of a house, the most important factor to look at is whether you have the ability and means to pay for your property,” Mr Newman said.
Mr Andrews suggested that those looking to purchase multiple properties were likely to have higher incomes and a wider range of spending options.
“They tend to have a much wider range, they’re much more likely to be able to afford to put their money towards other properties, they may be looking to invest in the property and, of course, they can choose to buy from a higher-end or lower-end property,” he added.
“Those are the factors that are going to be driving those trends, not only within the house buying community, but throughout the entire country.”
Home ownership is a key element to maintaining your wealth.
“In my view, you’re better off in owning a home if you have a house with equity in it,” Mr Warren said.
You’re better for your money if you’re living in a house that has a well-managed value that has an opportunity for growth and growth opportunities for your home.