Going from renter to homeowner is a monumental step. The debate continues as to which is more beneficial. Nonetheless, those who want to buy, should take steps to make their dream come true. Utilising the Budget Planner Calculator prepares you and helps you stay on track.
Budget Planner Calculator
There are several online and budget planning apps on the market. Ours uses tech focused on the budget planning needs of the future homeowner. It is divided into two categories, general and expenses. The general category asks you to input net wages, pension and child support. Investment income, family benefit and bonuses are other inputs. If other income exists, enter it, too. For every input, select weekly, fortnightly or annually. Then, the calculator totals the income. Next, move on to the expenses.
The expense category requires more inputs, organisation and time. To get a thorough picture, enter your repayment, insurance and transportation expenses. It is also beneficial to enter personal and other expenses. The goal is to see total net income against total expenses. If there is a surplus, you see the amount. Surplus is the amount that you can start putting toward your new home. As a renter, you have a monthly lodging expense, which can be re-routed toward a monthly mortgage payment instead.
Should You Rent or Buy?
The answer to should you rent or buy is it depends. In the long-run, homeownership makes more financial sense because the monthly payments are applied to an asset. Renting applies the payment to someone else’s asset. So, take a look at your situation and current circumstances.
First, figure out if you are ready for the responsibilities of homeownership. On top of the monthly payments, maintenance, repairs and taxes are your obligations. There is also the unexpected.
Next, figure out how you are going to finance the purchase. A down payment decreases the amount that must be borrowed. Opting for a starter home lowers the amount that needs to be borrowed, too. Here, you are starting to figure out how much home you can afford.
Finally, figure out if you can comfortably afford the monthly payments by using the Budget Planner Calculator. This is a good time to be honest about your expenses. Then, take into consideration your future plans. Marriage, a growing family and career changes also impact this decision.
Next Steps
Now that you have a firmer grasp on your financial situation, take action. If homeownership is your goal, organise your financial documents. Then, contact a non-banking lender like us to receive more information.
Budget Planner Calculator Conclusion
Homeownership is a dream that comes true for many. Getting through the financing application process is half the task. The other half is staying on track with payments. Mortgage House’s Budget Planner Calculator is available to you, so is our team.
