The Australian dream of homeownership has for decades been seen as the foundation stone for financial prosperity. There are, however, many costs of owning a home that you just don’t see when you’re renting. As property prices stabilise and interest rates remain relatively low, there looks to be renewed interest from first home buyers entering the property market. The move to homeownership certainly makes more financial sense than renting and paying off somebody else’s mortgage, right?
Buying your own place can be a path to a solid financial future because the mortgage payments you make every month lead to an increased home equity and the rising values of home, which will eventually add to your asset. However, potential buyers who aren’t prepared for the true cost of owning a property may be shocked by the bite homeownership can take out of their wallet in addition to their mortgage payments.
So, where does your money go?Continue reading