Saving for a home is a pretty simple concept, right? It goes something like this; save, save, then save some more! But hold on … maybe you’re more ready than you realise? 

While building up a deposit is an absolute must, there’s a bunch of other factors lenders look at to decide if you’re mortgage-ready – and you might already tick some of those boxes. 

Matthew Clark, a RAMS home loan specialist from Wollongong in New South Wales, explains why it’s not just about the deposit digits.

Sign #1: You’ve got a good 9-5

“First cab off the rank is stable employment,” Matthew says. 

“Naturally, you need to be saving for a deposit if you want to buy your first home, but having a good, stable job, that you feel comfortable in, with good remuneration, is the base for everything else,” he says.

For the vast majority, a full-time gig is how they’ll earn the cash to pay the loan back, after all.

Matthew says lenders also understand that Gen Ys tend to “job hop”, so don’t be stressed about not having 10 years with one employer under your belt!

Being self-employed doesn’t rule you out either. “With a permanent full-time job, it’s more straightforward, because your pay is set, but if you’re self-employed, it’ll require a bit more history about what you earn and getting advice early on is a good idea,” he says.

A steady job doesn’t need to mean slaving away in an office, self-employed buyers get home loans too. Picture: Tamara Graham

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Sign #2: You’re smart about debt

It goes without saying that the less debt you have, the better your chances of getting a mortgage. 

“But let’s be realistic, at this stage of your life, you may well have other debts,” Matthew says. How you handle them as you prepare to buy a house is what matters.

Paying off all debt – like car loans and credit cards – any which way you can, isn’t necessarily the best approach, he explains.

“Don’t try to pre-empt what a lender might want or favour. Talk to someone who understands home loans, because it’s really a case-by-case thing.

“If you have $20,000 left on a car loan, say, and someone gifts you that amount, it might not be the best idea to pay that all off. You might be better to add that $20,000 to your deposit, but it really depends,” Matthew says.

“It’s best to lay it out on the table with someone who knows what they’re doing.” 

Honesty is the best policy when it comes to talking to professionals about your debts. Picture: Kate Hunter

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Sign #3: You’ve got a good rental history

It may just seem like paperwork, but renters should get their name on rental agreements if possible.

“It’s never a bad thing to be able to prove a strong rental history, as it shows you’ve paid rent regularly,” Matthew says.

Paying your rent on time will keep your housemates AND your lender happy. Picture: Kate Hunter

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Sign #4: You understand consistency is king!

As well as being able to point to a big fat deposit, showing how you did it matters too, Matthew explains.

“All savings are great, but being able to demonstrate you have consistently saved money, say weekly or monthly, on top of paying rent, is a good indicator to a lender that you can handle a mortgage,” he says.

Information in this material is general and does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you.  You should also obtain independent professional advice relevant to your financial circumstances. RAMS Financial Group Pty Limited does not endorse or assume any responsibility for the advice, content or services provided by any third party referred to in this material. RAMS Financial Group Pty Limited ABN 30 105 207 538 AR 405465 Australian credit licence 388065. Credit provider and issuer of RAMS deposit products: Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714

This article was originally published on
15 Jan 2018 at 9:00am
but has been regularly updated to keep the information current.

When Reza Chen and his partner, Rika, began organising their wedding, they also began thinking about where to buy their first home.

So, in between searching for dresses and venues, they spent hours online looking at new developments or established city apartments that they could call home.

It was an important decision and they took their time to consider exactly what they wanted.

Have you considered all of your options?

A city location, plenty of space, a modern design, quality appliances and good amenities were all high up on their wishlist.

“We looked at a series of developments, including the St Boulevard development,” says Reza, 32.

The St Boulevard development has a central location, which was a key consideration for the couple.

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“We were considering buying either an off-the-plan property or an existing property, but we couldn’t find anything we liked that was already built and suited our budget,” he says.

“We both liked St Boulevard and it was within our budget, so we purchased an apartment at Magnolia Residences.”

What are the benefits of buying off-the-plan?

Buying off-the-plan can have several benefits including modern features, the peace of mind knowing that no one has lived in it before, cost savings, customised finishes and fittings, a flexible floor plan and having additional time to save money.

These were all considerations for Reza and Rika, too.

Modern features and the fact that no one has lived in these apartments before are other key selling points.

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“I like the shape of our apartment,” says Reza.

“Our current apartment in Southbank belongs to my parents and it’s slim and elongated whereas our new home is a squarer design and the kitchen, living and dining area is open-plan,” says Reza.

“It feels more spacious and the two bedrooms and bathrooms are also a generous size.”

Does apartment living suit your lifestyle?

Apartment living isn’t for everyone, especially if you’re used to a house with outdoor space. However, modern developments are often spacious and incorporate elements like a rooftop garden, or wrap-around balcony.

Reza, who works in banking, moved to Melbourne from an apartment in Perth’s CBD in 2013. Rika, 30, is from Indonesia and, like her husband, prefers apartment living – and particularly somewhere with a resort-style atmosphere.

The open-plan design makes the apartment feel spacious.

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Their new apartment development has a central community garden with a pool that winds its way around three signature trees.

What amenities are important to you?

A private dining room, wine bar, reading room, health club, spa, cinema, gym, pool tables, theatre and even a karaoke pod are also available to residents.

“My wife loves the resort-style vibe. We travel to Bali a lot and the community area has that relaxing feel. We can entertain guests there too,” says Reza.

Discover every corner of the tranquil garden.

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Located on St Kilda Road, they will be a quick walk or tram ride away from the CBD and popular suburbs like Prahran and St Kilda.

Decide where you want to live

“I work in the CBD and I walk to and from work – convenience is important to me,” says Reza.

“We love being close to the city’s laneway bars and restaurants. When we socialise and catch up with friends, it’s always in the city and we can pretty much walk or tram to wherever we need to be. I like to jog on the weekend and it’s easy to get to Albert Park or Kings Domain.”

Their new home is also within easy reach of Wesley College, where Reza and Rika plan to one day send their children. Married in early May, they are looking forward to seeing their home take shape.

All renders supplied by Magnolia Residences. 

This article was originally published on
31 May 2018 at 12:01am
but has been regularly updated to keep the information current.

What is a condo?

Types of condos

Pros of owning a condo

Cons of owning a condo

How to buy a condo

Questions to ask when buying a condo

Buying a condominium vs. house: What’s the difference?

What is the difference between a condo and an apartment?

What is the difference between a condo and a house?

What is the difference between a condo and a townhouse?

Leigh Marcus, one of Chicago’s leading real estate agents and FastExpert partner, provides unique insight into the North Side Chicago neighborhoods. Not only does the Leigh Marcus Team operate here, but Leigh also raises his family here, making this a must-read for everyone!

Chicago neighborhoods offer a diverse tapestry of residential communities, each with its own unique charm and character. Among these, Bucktown, Roscoe Village, and Old Irving Park stand out as desirable neighborhoods for homebuyers seeking a blend of urban amenities and suburban tranquility.

For me, Roscoe Village became home, not only for my family but also for my team’s headquarters, because it has a little piece of what aligns all of these communities closely together.

As you embark on your journey to find the perfect home in these vibrant communities, check out these insights and tips to guide you through the process.

Roscoe Village

Nestled on the North Side of Chicago, Roscoe Village exudes a warm, family-friendly atmosphere with tree-lined streets and quaint storefronts.

Known for its cozy cafes, boutique shops, and local eateries, Roscoe Village appeals to those seeking a tight-knit community vibe within the bustling city. The housing options range from charming vintage homes to modern condos, offering something for everyone.

Bucktown

Adjacent to Wicker Park, Bucktown epitomizes urban chic with its trendy boutiques, art galleries, and hip dining spots.

The neighborhood boasts a mix of historic architecture and contemporary lofts, attracting young professionals and families alike. With easy access to public transportation and a thriving cultural scene, Bucktown embodies the dynamic spirit of Chicago’s creative class.

Old Irving Park

Steeped in history and architectural charm, Old Irving Park offers a tranquil retreat from the urban hustle.

Lined with majestic Victorian homes, lush green spaces, and picturesque streetscapes, this neighborhood exudes timeless elegance and suburban allure. Residents enjoy a sense of community camaraderie while relishing the convenience of nearby amenities and transportation options.

Insights for Home Buyers

When looking at a new home in these areas (or any community, really), it’s important to keep several behaviors on the top of your mind.  

1. Define Your Priorities

Before diving into the home buying process, take time to outline your priorities and preferences.

Consider factors such as proximity to schools, commute times, neighborhood vibe, and housing budget. By clarifying your must-haves and deal-breakers, you can streamline your search and focus on properties that align with your lifestyle goals.

2. Research Market Trends

Stay informed about the current real estate market trends in these North Side Chicago neighborhood communities.

Monitor property prices, inventory levels, and days on market to gauge the overall competitiveness and affordability of each neighborhood. Working with a knowledgeable real estate agent can provide valuable insights and help you make informed decisions throughout the buying process.

3. Explore Financing Options

Explore various financing options and mortgage rates to determine the most suitable solution for your financial situation.

Get pre-approved for a mortgage to strengthen your purchasing power and demonstrate your seriousness as a buyer. Keep in mind that securing financing early can expedite the closing process and give you a competitive edge in a competitive market.

4. Attend Open Houses and Neighborhood Events

Immerse yourself in the local community by attending open houses, neighborhood events, and farmer’s markets. Engage with residents, explore different areas within each neighborhood, and envision yourself as part of the community fabric.

Pay attention to school districts, parks, and amenities that align with your lifestyle preferences and family needs.

5. Conduct Due Diligence

Prioritize due diligence when evaluating potential properties in the community.

Schedule home inspections to assess the condition of the property and uncover any potential issues or repairs. Familiarize yourself with local zoning laws, building codes, and property taxes to avoid any surprises down the road.

6. Think Long-Term Investment

Consider the long-term investment potential of your prospective home in Chicago’s residential real estate market. Assess factors such as property appreciation, neighborhood development projects, and future resale value.

A strategic approach to homebuying can yield both personal satisfaction and financial growth over time.

Find Your Ideal Chicago Neighborhood

Navigating the residential real estate landscape in Roscoe Village, Bucktown, and Old Irving Park requires careful consideration, research, and patience. These are the steps that I followed in selecting Roscoe Village as a family and business base of operations.

By understanding the unique characteristics of each neighborhood and leveraging valuable insights and tips, you can embark on your homebuying journey with confidence and clarity. Whether you’re drawn to the vibrant energy of urban living or the tranquility of suburban bliss, Chicago offers a diverse array of housing options to suit every lifestyle and preference.

Work with the best real estate agent who can guide you along the way and help you find your ideal home!

Happy house hunting!

There’s usually a moment that tends to hook people on the idea of buying property abroad. You’re sitting on a balcony somewhere you don’t live, coffee in hand, watching a street come to life at a slower pace than you’re used to. Maybe it’s coastal Spain, maybe it’s a condo in London, perhaps it’s somewhere you hadn’t even heard of a year ago.

And at some point, the thought bubbles up: I could live here.

That’s where things start. But buying a home abroad isn’t the same as visiting one. A place that feels effortless for a week can become complicated when you try to own a piece of it.

Homes come with systems—legal, financial, and cultural. And when you’re operating inside a system that isn’t your own, small misunderstandings have a way of turning into expensive ones.

Here’s what experts say buyers should understand before purchasing a home overseas.

Don’t buy the vacation version of a place

The biggest trap in buying property abroad is confusing a short stay with real life.

A home isn’t just the view from the terrace or how close it is to the water. It’s what the neighborhood feels like in February. It’s how loud it gets at night, how far the nearest hospital is, how easy it is to get basic services handled when you’re not a local.

Timothy Scott, Editor at Luxury Latin America, puts it this way:

“Swooping in on vacation and making a quick purchase is very risky because you don’t have a handle on real market prices, the pros and cons of different neighborhoods, or what pitfalls are common there. If you rent for a year before buying and spend plenty of time learning the market characteristics as well as what others before you have experienced, you have a much better chance of avoiding any downside and paying a fair market rate for what you’re purchasing.” 

If you’re serious about buying a home abroad, spend time living there first. Not as a visitor, but as someone running errands, dealing with utilities, and experiencing what daily life actually looks like. That’s the version of the place you’ll own.

A house is only as clean as its paperwork

A home can look perfect and still carry problems you can’t see—especially in another country.

Title issues, unpaid taxes, shared building debts, missing permits—these aren’t rare problems. And when you’re buying property abroad, they don’t stay attached to the previous owner. They follow the property.

Mikkel Thorup, Founder and CEO of Expat Money®, puts it plainly:

“When it comes to buying real estate abroad, the first thing I’d tell you is this: do not fall in love with or become overly attached to any property before a trusted local lawyer confirms the property is actually clean and ready for sale. They should also check for ownership disputes, liens, unpaid taxes, or other hidden problems that could become your problem after closing.” 

This is where a good local lawyer earns their keep. Not someone recommended by the seller, not someone cutting corners—someone who works for you and understands the local system well enough to catch what you can’t.

Every country handles homes differently

Buying a home abroad means stepping into a process that may not resemble what you’re used to.

In some places, verbal agreements carry weight. In others, everything hinges on notaries and government registries. Even something as basic as who holds funds during a transaction can differ.

Spain is a common destination for buyers, and it offers a good example of how specific the process can get.

Heidi Wagoner, a Move to Spain Consultant for Wagoners Abroad and Almuñécar Info explains:

“If you’re buying property in Spain, always hire an independent Spanish Lawyer to check the legal status of the property, debts, and licenses before signing anything, as you will inherit the debts. It’s important to obtain an NIE number (foreign identification number) early, as you’ll need it for the purchase process and utilities and the lawyer can help with this. Finally, take time to research the area year-round, especially in coastal towns where summer and winter lifestyles can feel very different.” 

That last part matters for homes in particular. A house isn’t just a structure—it’s tied to a community, and that community can change dramatically depending on the time of year.

The real cost of buying a home abroad

The listing price of a home abroad is rarely the full story.

There are always additional costs—some obvious, some less so. Taxes, legal fees, notary costs, registration fees, and ongoing community expenses can add up quickly.

Louize Christaens, Marketing Director at Globexs, breaks it down:

“When purchasing property in a foreign country, you must look beyond the initial purchase price and factor in the localized ‘acquisition overhead,’ which can add an unexpected 12% to 13% to your costs. Additionally, because international buyer dynamics change rapidly, it is vital to secure a local, independent legal partner who can navigate regional administrative hurdles like acquiring tax IDs and vetting properties for hidden community debts.”

If you’re buying an apartment or a home in a shared development, those “hidden community debts” matter. You’re not just buying walls—you’re buying into a system of shared responsibility.

Know what you’re solving for before you buy a property abroad

Most bad decisions around buying property abroad don’t come from picking the wrong house. They come from not being clear on why you’re buying in the first place.

Nasos Fousias, Head of Astons in Greece, frames it this way:

“Before buying property abroad, clients should first define the purpose of the purchase: investment, lifestyle, relocation, or long-term optionality. An investment-led decision requires market data, rental demand, local regulation, and proper legal due diligence. A lifestyle or relocation purchase should start with understanding how the area works beyond the holiday season. For international buyers, it is also important to consider whether property ownership can support wider objectives, like capital diversification or alternative residency planning. The strongest outcomes usually come when the property decision is assessed not in isolation, but alongside legal, tax, mobility, and family considerations.”

If you’re chasing yield, you need data, demand, and a clear understanding of local rules. If you’re chasing a lifestyle, you need to know what a Tuesday feels like in that place when nothing special is happening.

Clear intent makes the rest of the process simpler. It tells you what matters, what doesn’t, and where you’re willing to compromise.

Don’t confuse a home with an investment thesis

It’s easy to start treating a home abroad like a line item instead of a place you’ll actually live. Numbers take over—projected appreciation, rental yield, and resale timelines. It feels practical, but it leans on the shaky assumption that you understand a foreign market well enough to predict how it behaves.

Most of the time, you don’t.

Andrew Motiwalla, Founder and CEO of The Good Life Abroad, puts it in plain terms:

“Foreign property markets are notoriously difficult to predict, and you won’t have the local knowledge edge. The buyers who never regret it are the ones who bought because they genuinely wanted to live there — not because they were chasing appreciation. If the rental income and resale value disappeared tomorrow, would you still want it? If yes, buy. If not, just rent a home.”

That question cuts through a lot of the noise. If you’d still want to live there without the promise of appreciation or rental income, you’re probably making the decision for the right reasons.

Understand residency and visa rules before buying

Owning a home abroad doesn’t automatically mean you can live there full-time.

Residency rules, visa limits, and administrative requirements all shape what your life will actually look like once you own the property.

Tracey Roberts, Senior Advisor at U.K.ABROAD explains how often this gets missed:

“One of the most overlooked parts of buying property abroad is ensuring your residency, visa, and passport situation is properly organized before making a major financial commitment. Many expats only realize later that visa renewals, residency permits, or even an expired passport can create unexpected complications when purchasing property, opening bank accounts, or finalizing legal paperwork overseas. Buying property abroad can be an exciting long-term investment, but preparation and understanding the local legal system are essential to avoiding costly delays and unnecessary stress.”

Before you buy, make sure you understand how often you can stay, what’s required to extend that stay, and whether ownership gives you any additional rights. In many cases, it doesn’t.

A home includes everything around it

A house isn’t just what’s inside the walls. It’s access to healthcare, infrastructure, and basic services—things that are easy to take for granted until they’re different.

David Tompkins of TFG Global Insurance Solutions Ltd. explains:

“Buying a home abroad can be an exciting lifestyle investment, but it is important to understand local property laws, tax implications, residency rules, and access to healthcare before making the move. Many expats are surprised to learn that local healthcare systems may be limited or unavailable to foreigners, making comprehensive international health insurance essential when living overseas.”

If you’re planning to spend real time in your home abroad, you need to know how the surrounding systems work. Not just when everything is going smoothly, but when something goes wrong.

A practical way to approach buying property abroad

There’s a steady way to go about this—one that favors patience over impulse.

• Live in the area before buying, even if only for a few months.
• Learn how neighborhoods function outside peak seasons.
• Hire an independent local lawyer to review every detail.
• Confirm the home’s legal status, debts, and permits.
• Budget beyond the purchase price for all associated costs.
• Secure required identification numbers and documentation.
• Understand residency, visa limits, and tax exposure.
• Plan for healthcare, insurance, and long-term logistics.

Buying a home abroad isn’t just a transaction—it’s an entry point into a different way of living.

The difference between visiting and owning

A good trip is easy. Everything is temporary, flexible, and designed to be enjoyed.

Owning a home abroad is different. It ties you to local rules, systems, and the realities of daily life. But if you take the time to understand those systems before buying, you give yourself a much better chance of ending up somewhere you can truly live — not just vacation.

If you’re shopping for a home, you may come across properties listed “as-is.” This means the seller isn’t making repairs or offering credits for defects and the buyer must be willing to accept the home exactly as it currently is.

In this Redfin article, we’ll cover what you need to know about buying a house “as-is,” and whether it’s the right option for you. So, whether you’re buying a home in Raleigh, NC, or a townhouse in Baltimore, MD, read on to learn about the term “as-is” in a real estate transaction.

What does “as-is” mean when buying a house?

Stephen Keighery, Founder of HomeBuyerLouisiana.com, says that “as-is” does not mean buyers ignore the condition of the property. “It means the seller knows we are not going to ask them to make repairs, renegotiate over every issue, or hold them responsible for problems after the inspection.” He explains that his team still has a general contractor complete a detailed evaluation of the roof, foundation, HVAC, electrical, plumbing, termite damage, moisture issues, and overall rehab scope. As long as the repair costs make sense, they move forward with the purchase.

When a property is listed and sold “as-is,” it means the seller will not make any repairs, nor offer any credits for potential defects of the home or grounds. Some examples of major defects that the seller doesn’t have to correct include:

• Structural problems
• Leaking or faulty roof
• Defective drywall
• Active termite infestation or damage
• Non-functioning systems (HVAC, septic system, etc.)
• Mold or mildew problems
• Presence of asbestos or other harmful materials

As a result, agreeing to purchase a property “as-is” is a serious decision for any buyer. In some instances, you may request an opportunity to inspect the property for informational purposes only, even though you’re already contractually obligated to purchase the property.

While unlikely, it’s possible that sellers may agree to a home inspection contingency, which allows the buyer to back out of the contract if the home inspection reveals major issues. Whether this is still considered an “as-is” sale depends on state law, so check with a licensed professional.

What does it mean if some parts of the home are sold “as-is”?

Sometimes sellers may identify specific aspects of a home being sold “as-is,” rather than the entire home. Common examples include:

• Fireplaces, chimneys, and flues
• Detached structures (sheds, garages, etc.)
• Household appliances (washer, dryer, refrigerator, etc.)
• Swimming pools, spas, hot tubs

In this situation, “as-is” refers to aspects of the property that may or may not be functioning which the seller will not repair or change as part of the contract of sale. Because this applies only to certain aspects of the home, it’s often less risky for buyers. However, the level of risk varies by property.

What does “as-is, where-is” mean in a listing?

With the inclusion of “where-is,” the seller indicates that the property must be accepted in its current location. In real estate terms, “where-is” effectively excuses any potential locational faults. Some examples include:

• The property is in a flood zone
• The property is not zoned for its current use
• The property is or may be scheduled to be taken by a government by eminent domain, right-of-way, easement, etc.
• The presence, or lack thereof, of restrictive deed covenants limiting what an owner may or may not do upon the property
• Inclusion, or non-inclusion, within a designated historic zone
• The property lies within an airport flyover zone
• The presence of some geological defect (inability to perc a septic system, elevated radon levels, shrink-swell soil, etc.)
• Title defects or disputes

Pros and cons of buying an “as-is” house

If you’re considering buying an “as-is” home, there are benefits and drawbacks to know.

Pros of buying a house “as-is”

• Lower purchase price: “As-is” homes are more likely to be listed and sell for a lower price. They are often in need of repairs, so sellers often account for this in the list price.
• Less competition: Buying an “as-is” house isn’t for everyone, so there’s a chance there won’t be as much competition for the home. 
• Potentially located in your preferred neighborhood: If you’re looking for a home in a specific area or on a plot of land, buying an “as-is” home may be a good option.
• Extra funds to renovate: “As-is” homes are often less expensive, meaning you may have additional funds to make needed repairs and renovate the home to your liking. 
• Faster homebuying process: There’s typically less room for negotiation between buyers and sellers, leading to a faster process. 

Cons of buying a house “as-is”

• Health hazards: One risk of buying a home “as-is” is the potential of health hazards, like lead paint, asbestos, or mold. You may face costly repairs to make the home livable. 
• Hidden problems: While a home inspection may reveal some issues with the property, it’s possible that there may be additional problems. 
• Additional expenses: As a result of hidden problems or health hazards, you may face expenses you didn’t have the budget for. 

Jonathan Cobey, CEO of CarolinaHomeCashOffer, says “one of the biggest mistakes buyers make with as-is homes is underestimating the true cost of repairs beyond what’s visible during a walkthrough. Cosmetic issues are usually manageable, but the larger risks often involve foundation problems, outdated electrical systems, plumbing issues, roof damage, HVAC systems, or hidden water intrusion.” He recommends getting a thorough inspection and walking the property with trusted contractors before committing so buyers can build a realistic repair budget upfront. 

• Inflexible sellers: Often, sellers may be inflexible when it comes to negotiating or making concessions, as they are aware that the property has problems. For example, they may be less likely to accept an offer with contingencies that allow the buyer to back out of the sale.  
• Financing hurdles: Some lenders may not agree to finance the home if there are serious problems with the home’s condition. Loans like VA or FHA may even require the repairs to be made before the sale can be completed. Buyers should confirm requirements with their lender.

Tips for buying a home “as-is”

There’s a lot to consider before buying an “as-is” property, and one of the most important factors is due diligence. Some examples of due diligence in an “as-is” sale include:

• Consulting with an attorney
• Having a title search performed
• Requesting the seller disclosure and reading it thoroughly
• Examining the deed and land records for potential red flags
• Inspecting the property prior to signing a contract
• Including a provision in the contract that allows for inspections and cancellation of the contract as a result of any inspection findings
• Commissioning a Wood Destroying Insect (termite) inspection in advance
• Having a licensed contractor examine the major structural components of the dwelling
• Consider purchasing a home warranty 

Derek R. Ballard of Inspection Gator Home Inspection advises buyers who plan to renovate an as-is property to evaluate foundation, plumbing, and structural issues before making any cosmetic improvements. Major structural or system problems can quickly consume funds that were intended for aesthetic upgrades. He recommends addressing the costly, essential repairs first before focusing on cosmetic changes.

Should I buy a home “as-is?”

Buying a house “as-is” isn’t for everyone, so it’s important to understand what you’re getting into. In many cases, you may not have the opportunity to walk away after inspection, so make sure you’re fully prepared for potential repairs and costs. At the end of the day, you’ll have to decide if the potential benefits of an “as-is” transaction outweigh the potential downsides and expenses.

While thousands of Australians are madly saving deposits right now to buy their first piece of real estate, not everybody wants to own a home.

Almost 110,000 started mortgages between October 2014 and October 2015, according to the ABS. That’s more than 15% of all property purchasers in Australia today.

But the headlines often miss the point that not all tenants are desperate to climb the proverbial property ladder and plenty of Aussies rent by choice because they see benefits outweighing the perks.

Pro-renters say leasing their homes from someone else is, or was, better than putting their own names on title deeds, for a number of reasons.

1. You can live a cheaper, more footloose lifestyle

Ryan Ebert lives just 4km from Melbourne’s CBD.

“I choose to rent … for lifestyle reasons, cost savings and also the flexibility of not being tied down; these are all benefits of renting,” Ebert says.

Lifestyle, transport, culture: Rental hotspots for young professionals

2. Renting can make investing affordable

By far the biggest advantage, Ebert says, is the fact he’s been able to afford to buy two low-cost investment properties while renting, and avoid all the extra ongoing costs of home ownership.

I choose to rent for lifestyle reasons, cost savings and the flexibility of not being tied down.

Renting means you can simultaneously be a tenant and a landlord.

“The biggest one, by choosing to rent, has been getting two investments … by the age of 25 and without having to sink everything into a high mortgage and commit for the next 20 years to paying off one place,” he says.

Sylish makeovers: 10 tips for making your rental feel like home

3. Live in a fancier home than you can ever buy

Gold Coaster Vanessa* also rents by choice, admitting she accepts the reality she simply cannot afford to buy her own home.

“Yes I rent by choice. I’m a single female with no kids, only my pets, who also is self-employed,” she says.

Renting allows me to move according to my changing lifestyle.

“It’s near on impossible for me to save for a deposit let alone be granted a loan.

“So while my circumstances prevent me from buying… I’ve also decided that it is actually more beneficial for me to rent overall than to buy. Renting also allows me to move easily according to my changing lifestyle and financial circumstances.

“My rental home has four bedrooms and two bathrooms and is in Molendinar on the Gold Coast.

“I pay $500 per week including $400 electricity credit (and) it is pet friendly.”

Home characteristics: Pet friendly rentals still coveted

4. Renting makes it easier to move addresses

Lacey Filipich was a tenant for more than a decade because it better suits a changeable work life.

“I rented for 11 years on the basic premise that you can rent your lifestyle cheaper than you can own it,” says the Western Australia-based 30-something.

“It also made moving for work much easier. I’ve moved 18 times in 13 years. And I loved being able to delegate all responsibility for repairs to the agent. I still think renting is a fabulous way to go.”

Filipich and her husband recently bought their first family home because the couple knew they’d reside in one location for the medium-term.

“I consider buying a home to live in a luxury; it’s not something I’d recommend unless you’re financially stable,” she says.

I consider buying a home to live in a luxury.

“We did it because we want to stay in one spot for several years after all our moves and renting leaves you susceptible to being asked to leave if the owner wants to sell or move in.

“Also, we found a home going cheaper than usual in the area we love due to a deceased estate so although we’re still paying more than we would renting, it’s a good deal from our point of view.”

*Surname withheld for privacy reasons.

Contrary opinion: 5 reasons buying your own home trumps renting

This article was originally published on
31 Oct 2019 at 9:00am
but has been regularly updated to keep the information current.

Many of us spend time renting while we save up to buy our own dream home.

So how can you get into your own place as quickly as possible while still paying the rent? We asked a financial adviser for his tips on what renters can do to increase their chances of buying.

If there are large credit card debts it could be detrimental to your borrowing ability.

The challenge of saving a deposit

According to Martin Speiser from Masu Group, the biggest obstacle for renters who want to buy is saving a deposit, particularly in big cities where rents are high.

“Renters are spending a lot of their disposable income on rent,” Speiser says. “This makes saving very hard.”

“It is also tough for young people as lifestyle is a priority – so it’s hard to tell a twenty-something not to go out and party or travel,” he says.

Despite the challenge, Speiser says saving a deposit is critical.

“Banks no longer lend 100% of the purchase price, so without a deposit you cannot buy,” he says. “It is also more difficult for parents or others to go as guarantors of loans these days”.

But while saving a deposit should be the main focus of renters who want to buy their own property, there are some other things to keep in mind.

Look at the bigger picture

Speiser says changes to the first home owner’s grant and the limiting of stamp duty concessions in some states doesn’t help.

This has often happened at the very same time as property prices increased.

ABS data shows how many Australian home buyers took out the first home owners grant between 2007-2016.

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This means it pays to spend time looking at the bigger picture and how this could affect your ability to buy property, whether positively or negatively.

“As prices increase, affordability reduces, and the deposit required increases,” Speiser says.

Speiser also says that, far from being a benefit to new home buyers, low interest rates actually make saving harder.

“You would think low interest rates would help buyers,” Speiser says. “However, if you are trying to save in a bank and interest yields are 2%, that’s not a lot of growth you are getting.”

Bank policies on lending have also been shifting – not only the Loan to Valuation Ratio (LVR) or how much they will lend on the value of the property, but also their willingness to lend in certain areas where they feel there is oversupply, like Docklands in Melbourne.

“If they do lend, it may be at lower LVRs,” Speiser says. “And the lower the LVR the higher the deposit needed.”

Prepare yourself financially

Speiser’s advice to those looking to purchase property is simple.

“Save, save, save, and try not to rack up personal loans and credit card debt,” he says. “If there are large credit card debts it could be detrimental to your borrowing ability.”

And be pragmatic about how you can help yourself achieve your goal.

“Many young people also choose to stay at home longer to save,” Speiser says.

Research the property market

Speiser says that, while most people know where they would like to live, you should always thoroughly research the property market and be open to exploring the benefits of new areas. Consider essentials such as access to public transport, schools, shops and other amenities, as well as any negatives.

And use sites like realestate.com.au/invest to check recent sales prices and go and visit properties currently on the market to see what your money really buys you.

Take a long-term view

If you can’t afford the area you like or the property that suits your lifestyle another option can be to buy an investment property. Speiser says this can be a good idea provided you have a long-term time frame.

“Generally property investing should be done with an eight to ten year time frame,” Speiser says. “I have seen many cases where people who rent and buy investment properties are better off long term than those buying a home and paying it off.”

But this is not a one-size-fits-all approach to getting on the property ladder and Speiser cautions that many factors need to be considered including the type of property, the potential for growth, income and the effect of negative gearing.

There’s also the option of buying off-the-plan. While Speiser says it is not without its own risks, it can help you keep saving a deposit while getting a foot on the property ladder.

Be informed about the process

Speiser says renters should also spend time researching the process of buying their own property and be fully informed about the costs – from stamp duty to legal or conveyancing fees.

For instance, prospective buyers should be aware that banks will not lend on the purchase price, they lend on valuation.

“If the valuation comes in lower than the purchase price then more of a deposit is needed,” Speiser says.

This article was originally published on
31 Oct 2019 at 1:00pm
but has been regularly updated to keep the information current.