Rent vs. Buying
What are the benefits of buying?
You can finally do what you please! Enjoy your own space and decorate your home the way you want without worrying what the landlord has to say.
Sick of being at the mercy of your landlord? Owning your own home means stability – no more moving out at lease end.
Instead of putting money into your landlord’s back pocket, you’re investing in an asset that could make you a healthy profit if you choose to sell later.
Equity is the difference between the current market value of your home and your remaining loan balance. As you pay off your loan, you’ll be building equity, which can be used to invest in other assets such as a new home, car, or other personal goals.
What are the downsides of buying?
Buying a home requires you to pay high upfront costs, as well as ongoing maintenance expenses and loan interest on top of regular mortgage payments.
Instead of being able to move easily from place to place as a renter, your home is a long-term commitment.
What are the downsides of renting?
As the property market and economy are constantly changing, so too will the cost of rent. Landlords will continue to bump up the price.
Renting generally doesn’t offer much security. Whether it’s dealing with unreliable housemates or the landlord choosing to sell the property or move back in, renting can leave you in the lurch with little notice.
Do we need to say more?! Inspections are a constant stress and hassle. You also don’t have the freedom to do what you want to the house.
A mortgage is like forced savings. You have to pay your mortgage periodically which goes toward creating an asset over time. With renting, it can be tempting to spend spare cash rather than save or invest it.
What are the benefits of renting?
More freedom and flexibility
Whether you need to relocate somewhere new for a job, upsize into a larger property, or switch an inner-city apartment for a quieter home in the suburbs, renting offers you more flexibility to live the lifestyle you choose.
Less stress financially
Many young Australians might not have the money available to put on a home loan deposit, let alone the costs of maintenance and regular mortgage repayments, so renting can be more manageable.
Can I get a home loan with no savings?
Yes! There are a number of options available for home buyers who have little to no savings. Depending on the amount you need to borrow and your personal circumstances, you may be able to get a home loan through one of the below options:
- Applying for the First Home Owner Grant (WA)
- Using a guarantor for a home loan
- Applying for the First Home Guarantee
- Using a monetary gift (also known as a “gifted deposit”)
- Apply for a Keystart Home Loan
Speak to one of our in-house finance experts who can work with you to determine the best option for you.
What is Keystart?
Keystart is a WA Government initiative designed to help get you into your new home faster by lowering the entry costs. You don’t need to be a first home buyer to apply for Keystart and you can easily refinance as soon as you’re ready.
To be eligible for a Keystart loan, you’ll need to meet the following requirements as a minimum:
- Be 18 years or older
- Be an Australian Citizen or Permanent Resident
- Live in Western Australia and want to buy or build here
- Have an income within our maximum limits (check our other FAQ)
- Not own another home or land at the time of settlement of your Keystart loan
- Plan to live in your home for the duration of your loan with Keystart
- Have enough funds available to cover all costs associated with the purchase, including your deposit, fees, and any moving costs.
Before applying for a Keystart loan, we would recommend finding out if you qualify first.
How much income do I need to borrow for a mortgage?
Your income is one of the first and most important criteria. Besides assessing your ability to afford loan repayments, lenders will also consider your employment security and any apparent future risks, e.g. self-employment. Generally, the more stable your monthly income, the more likely your application will be approved.
What credit rating do I need for a home loan?
Your credit score is a number based on your credit report, which includes records on money you’ve borrowed, loans you’ve applied for, and whether you pay them back on time.
Your credit score will be between zero to 1,000 or 1,200. The higher your score, the more reliable you will look to lenders. A score of at least 670 and above is considered good.
How much should I save for a house deposit?
For most lenders, the more money you have saved for a home loan deposit, the more you’ll be able to borrow. Most lenders require a deposit of at least 5% – 20% of the total home loan amount.
Are there options for me if I don’t have a large deposit?
There are a number of options available for home buyers who have little to no savings.
Depending on the amount you need to borrow and your personal circumstances, you may be able to get a home loan through one of the below options:
First Home Owners Grant
What is the First Home Owner Grant (FHOG)?
The First Home Owner Grant (FHOG) is a one-off $10,000 payment from the WA Government to aid first home buyers in buying or building their first home. The FHOG is a genuine grant. It doesn’t incur interest and you never have to pay it back. Also, those who can get the grant don’t pay stamp duty on any home purchased up to the value of $430,000. Homes between the sale value of $430,001 and $530,000 receive concessions (reduced stamp duty).
Who is eligible for the FHOG?
To be eligible for the FHOG you will need to meet the following requirements:
- You’re an Australian Citizen
- Are 18 years or over
- Have not received a FHOG grant from another state or territory in Australia
- Have never owned another residential property in Australia
- You occupy the home as your principal place of residence for a continuous period of at least six months, within 12 months of receiving the FHOG
Do I have to pay the FHOG back?
No! The FHOG is a genuine grant. It doesn’t incur interest and you never have to pay it back.
How much can I spend with the FHOG?
If you’re buying an off-the-plan home or building a new home in Perth, the maximum you can spend is $750,000.
Does the FHOG apply for house & land packages?
Yup. Those looking to purchase a house & land package as their first home can rest easy knowing that the FHOG applies.
How do I apply?
You can apply for the FHOG yourself directly through State Revenue, but most people choose to apply for the grant through an approved agent. Easystart Homes is an FHOG-approved builder. This means we can help you apply and assist with the paperwork. Having someone with experience to help with your application moves things along quicker… and relieves you from all that form-filling stress! The hardest part will be deciding what to do with your new-found free time.
House & Land
What is a house & land package?
A house & land package is the combination of a new home and a block of land that the home will be built on. The prices of these packages are for both house & land combined. Easystart provides many house and land packages that are already pre-built, meaning that you don’t have to go to the trouble of finding land & a matching home design separately. If you can’t find the perfect package, then let our team of house and land specialists tailor the perfect package for you, all you need to do is get in touch and tell us exactly what you’re looking for.
Why should I choose a house & land package?
Finding your ideal block of land can be difficult. And when you do find the right block, there may be restrictions on what types of homes can be built there. Easystart Homes does the hard work for you. Choosing one of our packages means you don’t have to worry about restrictions or specific building requirements.
How do I buy a package?
You can browse our house & land packages using the search filters to find a package that suits your needs. Once you have found a package, you can get in touch to chat to one of our helpful New Home Consultants.
What if I can’t find the right package?
Have a location in mind? There’s a good chance we have a package to suit. If you can’t find the perfect package, you can chat to our team of house & land specialists and we will tailor a package for you. Just get in touch!
How much a deposit do I need for a house & land package in Perth?
With Easystart, building your own home is more affordable than you may think. You can get started with just $2000*. We’ve got loads of low deposit options available that make owning your own home more doable! Our in-house finance experts will take a look at your situation and find out if you qualify and what option is best for you.
Do I need to pay stamp duty on a house & land package?
If you’re buying your first home for up to $430,000 or vacant land up to the value of $300,000 in Western Australia, you won’t pay stamp duty!
All about Easystart Homes
How do you build your homes?
As part of the Summit Homes Group, we have proudly built over 40,000 homes. We know exactly what it takes to build award-winning homes.
We build using the BrickHybrid and Double Brick building methods.
BrickHybrid (Brick veneer)
BrickHybrid is an epic combination of brickwork (on the outside) and steel frames made from TRUECORE® steel (on the inside). With plasterboard and insulation, the method improves energy efficiencies, keeping you warmer in the winter and cooler in summer. BrickHybrid also provides sound-proofing.
Double brick is the most traditional building method in WA, but the industry is slowly saying goodbye to the Grandfather double brick. Double brick (or brick cavity) homes offer fairly decent acoustic properties, meaning you’ll enjoy a reduction in noise pollution (sounds, singing, blender, beats etc.). Thermal qualities aren’t quite as good as our BrickHybrid method though.
Do you have a showroom?
Yes! The Style Studio by Summit is 800sqm home building inspiration, with everything from external bricks, carpet to door handles, and tapware. Not to mention, the Style Studio was awarded the winner of Excellence in Showrooms by HIA WA in 2018, 2019, and 2020. You can stop by anytime and look around. Or if you want a tour, book an appointment here.
Is Easystart part of the Summit Homes Group?
You bet! Easystart Homes is powered by the Summit Homes Group. When you choose Easystart Homes, you’ll benefit from decades of experience, and the epic construction quality and innovation of the Group. The Group has over 45 years of award-winning experience, and has won awards like the HIA Professional Major Builder of the Year and the Project Builder of the Year 2021 by the MBA.
How can we keep track of the building process?
We’re dedicated to delivering not only an outstanding product, but also an outstanding experience, which is why we developed the @Home Customer Portal. The portal is your go-to throughout the building process. The system manages pre-start selections for the home and holds documentation like contracts and plans. Once we reach construction, the portal is where you will keep an eye on the progress – exciting! Find out more reasons why you should build with us here.
How do you make building easy?
Our whole reason for being is to make your life easier. Easystart Homes benefits from the Summit Homes Group’s 45 years’ in the business – we know how to build high-quality homes efficiently. We also have an in-house finance brokerage, Westgate Financial Services, that streamlines the finance side of things.
Ready to build?
LET’S do THIS!
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