The general wisdom that is handed down from grandparents and our parents is that the best investment you can make is to purchase your own home and pay it off as soon as possible so as to own it outright. However, in recent times, this wisdom is no longer a given, with many people choosing to rent instead of buying out of fear of losing great sums of money if the housing climate were to go bust like we saw happen in the U.S.A. We can’t argue with the fact that many people lost their homes, their investments and retirement portfolios that were tied up in real estate. Is this likely to happen here in Australia? Well, it’s impossible to say for sure that this will never occur on Australian soil. Financial gurus have warned that several factors including excess supply for the demand for housing, or foreign investment, or even the baby boomer generation downsizing all at once could cause the housing bubble to bust in Australia, but so far there is no concrete evidence to suggest that these theories are anything more than just that.. theories.

selling-houses

So putting fear of a great housing bust aside, is buying a house still a wise investment? Well, buying a house is still an excellent idea for all the reasons that you have undoubtedly heard from your parents and grandparents. Buying your own home is still a wonderful investment if you have the intention and the means to pay out your mortgage as soon as possible. If you can have your home paid off before you retire, that is your biggest recurring bill that you will no longer have to afford once you finish working. It is a great source of equity should you want to invest in a second or subsequent property in order to grow your portfolio and create passive income streams. Furthermore, should you wish to downsize in the future, you have the ability to free up reasonable sized chunks of cash allowing you to buy that boat, take a few trips overseas or buy that new 4WD and caravan and hit the road. Or even better still, hang onto your home and rent it out while you travel Australia or the world and collect rent which can help fund your travels! You certainly can’t do any of the above if you have paid the equivalent of a mortgage repayment to a real estate agent in order to rent somewhere to live. When you add up all those rental payments over a lifetime, we here at Home Owners Club feel that we would much rather know that we have a tangible asset in the form of a house that we can sell, rent out or pass on to our children in our senior years, rather than have nothing to show for all those years of payments, whether they are to a bank or a real estate agent.

That’s right, you read the headline correctly.. we at the Home Owners Club Blog are throwing a little Christmas party for all of our loyal members, as our way of saying thank you for being part of our online community! What better way to say thank you and to have a little bit of fun amongst our members, than by taking a little cruise around the city on one of the most state of the art party buses in the region?! We’re talking stretch limousine style, leather wrap around seating, a mini bar, disco lights and integrated sound system. Oh and probably some really bad karaoke too, if your vocal talents are anything like ours!

In all seriousness though, we at the Home Owners Club are really very grateful for all of our members, their contribution to the many topics that we cover regarding home ownership and for the community that we have been able to create as a result. We honestly could not have done it all without you, so from all of us at Home Owners Club, thank you! We are so excited to meet you all in the flesh and to celebrate the wonderful year that it has been.

If you are a member of the Home Owners Club and would like to book your seat on board our party bus (courtesy of Perth Party Bus Hire, check out their website at PerthPartyBusHire.com.au)  Christmas tour of downtown Perth, send us an email and we will confirm your seat on board. Get in quick though as seats are limited and this event is strictly first in, first served. Due to limited seating on the party bus, we are unable to accommodate ‘plus ones’ or families. Seats will be allocated to Home Owner Club members only. Drinks, snacks and entertainment will be provided free of charge. Since this is a Christmas party, come wearing your worst Christmas t-shirt or outfit (a prize will be awarded to the worst dressed member) and prepare to mix and mingle and get to know your fellow Home Owners Club members in person! We will be making a few stops along the way at different licensed venues so please ensure you bring some I.D with you, as well as an appetite for fun because from what we’ve seen and experienced on these party buses, this should be a hoot! Book your ticket now and see you on board the Home Owners Club Blog Christmas Party Bus Tour 2016!

So you finally purchase the property you’ve dreamed of. What next? Being the most likely valuable asset, naturally you’d probably look for insurance to look after your belongings. That is, getting insurance to protect your house in case of fire etc. When people sign up for house insurance, some will forget about protecting their content in their house. Well, let us rephrase, not putting enough emphasis on content insurance. And for those who takes both home and content insurance – there is more you can do to further protect their house content. What is it you may ask? Well, read on…

One thing you can do is upgrading the security at your house. This post is was inspired by Clint, a local locksmith in Perth who specialise in home security by providing high quality locks for your beloved house. Clint has been a member of APHC within the first week of our opening. So it is only natural to give him credit when credit is due. Search for the term locksmith Perth on the internet and most likely than not you will find him. Trading as Power Lock and Security, Clint has become a popular face whose service is valuable to the Perth community. From helping people gaining entry back into their property to installing various types of lock to help secure your house from unwanted intruders.

perth-locksmith-powerlock

 

According to Clint (who is a proud home owner himself), by investing in your local locksmith to install high quality locks in your house will not only protect it and reduce your premium amount; but it will also add value to your property. Just like many things in life, you get what you paid for. By trying to save money and getting cheap locks will inevitably cost you more in the long run.

Many would probably argue that they can install or even repair the locks themselves. But we strongly suggest against this. Unless of course if you hold a locksmith license. Doing a DIY job in installing locks or other security things might have negative consequences. So it is best to leave it to the professionals. As the primary reason to have a licensed locksmith to install and/or repair your locks is to protect your property and the content in it, then choosing one that is licensed only makes proper sense. Using unlicensed technicians, or doing it yourself – especially when working with electrical locking systems may compromise or even void your right to claim insurance in case something undesirable happens.

So the moral of this post is to invest, invest  and invest some more! After all, your house is your most valuable asset. So it is well worth the investment, we absolutely don’t have any hesitation to recommend all homeowners to invest in a professional locksmith!

The million dollar question is whether to buy or rent (which one will be better for you financially?) Well, to be honest – the answer seriously lies in the eye of the beholder. Whether you rent or buy depends on your current situation. Sounds cliche doesn’t it? Well, it does when you are not over complicating things. It is why financial planners are in business. Everything that revolves around budgeting, investment etc will almost certainly need the help of a professional financial planner.

Different states in Australia will have some sort of impact as there are many factors coming in to play when making decisions that will benefit you financially. So we suggest you check with a financial expert  whose day job is looking at this matter on a daily basis. Another advice is to make sure you go to the meetings (with the financial planner) with an open mind. That is, don’t assume things. Listen and think it out. In some cases, you might even be surprised of the evaluation.