This is very much a personal question that will be answered very differently depending on your family background, social status, employment situation and your personal dreams.
Owning your own home has always been the Australian dream and historically property ownership has resulted in increased values over time.
Many financial experts will propose arguments both ways as to the financial benefit of investing your savings into your own home versus other investment opportunities. Some are of the view that the cost of renting is lower than the cost of owning your own home when you consider, ongoing costs, upkeep, repairs and maintenance, insurance etc. over time.
On the flipside, the rise in house prices over the past 20 years, has produced some incredible growth in house pricing for Australians which in Australia remains one of the few tax-free profits you can make on your own home. Some Australians have made homeownership a business that has shaped their future and has accumulated some properties for investment.
Other more skilled individuals with great ideas or building experience have used these skills to purchase homes, renovate them and then sell them. This has resulted in upgrading each time and has allowed them to live in a high-priced home faster than otherwise possible.
Some individuals see homeownership as a way of being forced to save each month, whilst others prefer the stability that your own home provides rather than renting. Some people enjoy the freedom of investing in their own homes through renovation and improvements. Some want to provide their family with a place of reference to call home.
Fundamentally, you can take a financial perspective about home ownership or a more personal perspective, either way, it is important for everyone to establish some clarity and purpose as to why you are choosing to purchase versus renting. This understanding will motivate you along the journey.
