This year the entire world has been shut down, travel has been prohibited, trade has been severely hit and our social-economic wellbeing has taken a monumental blow. How much worse could our situation get?
Without meaning to sound negative, if we’re talking about a scenario where everyone loses their job, the market crashes, the economy crashes like we’ve never seen before, and you’re forced to sell… Well that event can happen at any time. So if you’re employed and you have your finances in order to buy a house, what are you waiting for?
Yes, it’s true that we don’t know what’s around the next corner. But we never will. And of course, property is never 100% risk-free, but it’s probably the next best thing after cash – some would argue it’s even better. So, while it may seem as though there’s never a good time to take the leap, we do know that property offers security, and right now, record-low interest rates mean it’s also cheaper than ever.
Even though owning a home is scary as it comes with responsibility, ongoing costs and commitment, it’s important to keep in mind what it can do for you – now, and in the future.
Here are some of the benefits of investing in property now rather than later:
1. Increased Wealth
– Historical data shows that your property value will rise, therefore creating wealth for yourself.
2. Peace of Mind
– Investing in property will give you security, and therefore will give you peace of mind. This is your property, and no landlord is going to come in and make the decisions.
– Over the last few years, the mortgage rates have been sitting between 3-5%. With the historic low rates, you will be paying less on interest costs. In fact, it might even mean that property ownership today is cheaper than renting in some cases. For example, if you were to compare buying a $1m home to renting it, assuming you purchased the property with a 20% deposit, the mortgage cost of $800k with interest of $19,920 per annum (based on 2.49% rate), would equate to $383 per week. Adding an estimated $5k per annum for rates and insurance, this would bring estimated cost to approximately $480 pw. Whereas renting a similar property could likely be $700-$800 per week.
In my opinion, if you do your homework and talk to the right people, you will never look back and regret buying property.
By Satyan Mehra