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Let’s face it – although buying a car is easy, paying off your car loan isn’t. If anything, car loans seem to be getting expensive. In 2023, the average Australian living in a capital city spent $190.23 per week and $9,892 per year on their car loan. It was 22% higher than in 2022. 

Is there a way to get you out of this pickle? 

Yes, there is. We are talking about car loan balance transfer. 

It may seem complex, but the car loan balance transfer is a powerful tool if you’re looking to save money on your car payments. In this quick guide, we will help you understand the essentials of transferring your car loan balance. 

Let’s get started. 

What is a Car Loan Balance Transfer?

A car loan balance transfer involves moving your existing car loan from one lender to another. Many car owners do this to take advantage of lower interest rates, better loan terms, or superior customer service. The car loan market in Australia is highly competitive, which usually makes it possible for you to find a better alternative. 

Typically, transferring a car loan is beneficial when:

• Lower Interest Rates: You can find a lender who offers a lower interest rate. This can help you save money on your car payments. 

• Better Loan Features: Some lenders may offer car loans with more flexible repayment terms. For one, they may not charge any penalties for making extra payments. This can help you repay your car loan sooner without additional financial burden. Secondly, some lenders may provide car loan transfers without service fees. So, you can transfer your car loan balance without extra charges. 

• Consolidated Debt: Some lenders might offer a consolidated car loan transfer. If you have multiple debts, this option helps you consolidate them into one car loan. It simplifies your finances. 

Steps Involved in Your Car Loan Transfer

Like every financial decision, transferring your car loan balance requires thorough research. It involves several factors, including knowing your current car loan balance, the terms of your loan, and finding a better lender.

Let’s break this process down for you.

Step 1: Check Your Current Car Loan

First things first, talk to your current lender and ask if they allow car loan transfers. If yes, do they charge any fees for transferring your loan to another lender? Get a clear idea of how expensive your car loan transfer will be. If you want to compare the two loans, you can use our online loan comparison calculator.

Next, check your current car loan balance, interest rate, and the terms and conditions of your loan. Knowing these details is necessary to make an informed decision. You can generally check these details through your lender’s online portal (website), mobile app, or by calling customer care. 

Step 2: Shop Around

This is a critical step. When talking to different lenders or researching them, think about

• Interest rates 
• Car loan transfer fees 
• Loan tenure 
• Repayment terms 
• Customer service 
• Other loan terms and conditions 

Find someone who offers a better deal than your current lender. You can use our online services like Savvy to find a better deal for your car loan balance transfer. Another way is to ask your friends and family. They might know a lender who is a perfect fit for your needs. 

Step 3: Calculate Your Car Loan Transfer Costs

Transferring a car loan involves some fees. For one, your existing car lender might charge you an exit fee. It may depend on the amount and tenure of your remaining car loan balance. The new lender may also charge a service or processing fee. Calculate these costs to ensure your car loan balance transfer makes financial sense. It should benefit you in the long run. 

Step 4: Gather the Necessary Documents

Keep all the necessary documents ready when preparing for a car loan balance transfer. It will speed up your application. Here’s a checklist of documents you typically need:

• A copy of your driver’s licence or passport to verify your identity.
• Recent payslips or tax returns to prove your earnings. 
• A utility bill or lease can serve as proof of your current address.
• Your credit score and history. 
• Details of your current car loan. 
• Details of your car like make, model, year, and VIN.

Step 5: Apply for the New Car Loan

Once you find the right lender, you can apply for the car loan. Fill in the application form and submit the necessary documents. The new lender may take four to five business days to approve your loan. After approval, the lender will pay off your existing car loan balance. They will transfer the debt to your new loan account. 

Transfer Your Car Loan Balance Today

A car loan balance transfer is an excellent way to save money on car payments. It can help you pay off your loan quicker and boost your overall financial health in the long run. However, it’s about finding the right deal that suits your needs. Be sure you understand the terms of your new loan and the costs involved in the transfer. This should help you make an informed decision. 

Thinking of transferring your car loan balance? You’ve come to the right place. My Money House is the one-stop shop for all your car loan needs. Call 1300 870 838 or fill out our online contact form to apply. 

Buying a car involves more than just picking your favourite model and driving off. You also need to sort out the payment part.

In Australia, about 2.4 million people have a car loan. The simplest way to get one is to go through the dealership’s office. While this is common, it’s not always the smart move. You might pay extra in interest, get stuck with add-ons you don’t need, and find yourself paying off your car for far too long.

This is just one of the many car loan mistakes new car buyers make. Keep reading to find out the top ten car loan blunders and how to dodge them.

1. Not Knowing Your Credit Score

Lenders use your credit score to figure out how trustworthy you are with money. The better your score, the lower the interest rates you’ll qualify for.

Knowing your score puts you in a stronger position to negotiate and save money. You can always use a credit reporting agency like Experian or Equifax to pull this information.

2. Not Calculating What You Can Afford

Before you talk to a lender, you need to get a clear picture of your finances. Look at any debts you already have and think about any big purchases you might be planning soon. All these can affect how much you can comfortably spend on a new car.

When you get a quote for a car loan, don’t just nod along—take the time to crunch the numbers using a car loan calculator. Make sure you can handle the monthly car payments, plus other costs like registration, stamp duty, and maintenance. It’s all about knowing what you can handle without stretching yourself too thin.

3. Not Shopping Around

Don’t go with the first car loan you come across. It’s important to look around before settling on a one. Comparing different options can help you get the best deal and keep you from overpaying.

Check out different banks, credit unions, and even online lenders. Compare their interest rates, fees, and any other charges. This way, you can ensure you’re getting a solid deal.

4. Focusing Only on the Monthly Payment

While you should see that the monthly car payment fits within your budget, fixating solely on this amount can lead to trouble. If you just look at the monthly cost, you could end up with a car loan that stretches on much longer than necessary. Crafty car dealers can sneak expensive extras into your financing package under the guise of achieving your desired monthly payment.

The smarter move? Focus on the car’s total price and the overall cost of the financing across the life of the loan. Make it a point to agree on the car price before diving into financing discussions.

5. Not Getting Your Car Loan Pre-Approved

One key step many overlook is getting pre-approved for a car loan. A pre-approval lets you know exactly how much you can borrow, clarifying your budget and preventing any temptation to overspend.

Keep in mind, though, that pre-approvals often come with a time limit; you might only have a few weeks to act. Secure this approval before you start shopping to streamline the buying process.

6. Not Putting a Down Payment

Consider putting down some cash when you buy your car. A down payment reduces the total amount you need to borrow, which in turn, lowers your monthly payments and the total interest you’ll pay over the life of the loan. Even a small down payment can make a big difference in how manageable your loan feels from month to month.

7. Choosing a Longer Loan Term

It’s tempting to go for a longer auto loan term, because spreading the cost over more years can significantly lower your monthly payments. However, this also means you’ll end up paying more interest overall. A good tip is to go for the shortest term you can comfortably manage to avoid spending a fortune on interest.

8. Ignoring Additional Costs

When budgeting for a new car, most people focus solely on the sticker price and the potential monthly loan payments. However, you must remember the additional expenses that come with car ownership.

Beyond the initial purchase price, you need to account for insurance premiums, registration fees, and the cost of fuel/toll. All these combined should give you a true sense of what you can afford. It’s better to plan for these costs upfront than be surprised later.

9. Rushing the Loan Process

Rushing through the auto loan process is a common pitfall that can lead to some seriously regrettable financial decisions. Many buyers get caught up in the excitement of purchasing a new vehicle and overlook critical aspects of their financing options.

Remember, the more informed you are, the better equipped you’ll be to negotiate terms that favour you, not just the lender. Patience and careful consideration can protect you from unexpected burdens and allow for a more enjoyable car-buying experience.

10. Financing Add-Ons

The only thing you want to finance in a car loan is the cost of the car. Adding extras like fees, costly add-ons, or taxes increases your loan-to-value ratio, which could potentially hike up your interest rate. More importantly, financing these extras means you’ll also be paying interest on them

Avoid These Car Loan Mistakes. Talk to the Advisors at My Money House

That’s our take on the ten car loan mistakes you must avoid. Your new car should be a blessing, not a burden. By being thorough and deliberate in your search, you can secure a car loan that fits your budget and financial goals.

Need more advice? Discuss your car loan options with the expert financial advisors at My Money House. We’ll listen to your needs and help you find a financing option that fits them perfectly. Get in touch today!

Every year, millions of car buyers find themselves at a common crossroads – buy a new car with all the bells and whistles or a used car to save money.

The new car vs old car debate is as old as time, and it’s about more than just the sticker price. You must consider several other factors, such as the potential for depreciation, maintenance, insurance, resale value, and not to mention your personal preference. That, too, plays a big part in your decision.

Understanding the pros and cons of buying new vs old cars can help you make a more informed choice. Let’s dive in to see which option suits your needs and budget best.

The Pros of Buying a New Car

If you’re drawn to the latest features and don’t mind paying a bit more upfront, a new car might be the right fit for you.

1. Customisation

The primary benefit of going new is the ability to personalise your car. You can choose the colour, style, and any extra features you want to make it truly your own.

2. Latest Technology

New cars come equipped with cutting-edge technology and safety features like advanced driver-assistance systems, better connectivity, and more efficient engines.

3. Better Loan Rates

Generally, financing a new car comes with lower interest rates compared to used cars. This can make getting a car loan more palatable, even if the overall price is higher.

4. Reliability

With a new car, there’s minimal risk of running into unexpected mechanical issues. Additionally, most new cars come with warranties that cover repairs and maintenance for the first few years.

The Cons of Buying a New Car

But new cars aren’t without their drawbacks.

1. More Expensive

New cars are often several thousand dollars more expensive than used cars, which could make a down payment or monthly car loan payments harder to afford.

2. Depreciation

A new car depreciates quickly, almost as soon as you drive off the lot. It’s estimated that a new vehicle can lose 20% of its value within the first year. This depreciation continues most sharply in the early years of ownership.

3. Increased Insurance Costs

Typically, new cars are more expensive to insure. They carry a higher risk of theft, and their replacement costs are greater, which bumps up insurance premiums.

The Pros of Buying a Used Car

Thinking about going the used car route? It’s a great way to save some cash upfront and in the long run. Here are some benefits to consider.

1. Less Expensive

The biggest draw of buying used cars is the price tag. According to Experian’s State of the Automotive Finance Market Report from Q3 2023, the average monthly loan payment on a used car was $533, compared to $726 on new cars. Opting for a car that’s a few years old can save you quite a bit, making it possible to afford a model that might be out of your budget when new.

2. Cheaper to Insure and Register

Not only is the purchase price lower, but you’ll also typically pay less for insurance, title, and taxes. Over the lifespan of the car, these savings can really add up.

3. Slower Depreciation

A used car won’t lose its value as rapidly as a new one. In fact, used cars only depreciate by about 10% after being three years old.

The Cons of Buying a Used Car

Buying a used car isn’t for everyone, and it’s important to understand the potential downsides.

1. Outdated Features

If you’re after the latest tech like a high-end sound system, a panoramic sunroof, or advanced safety features, a used car could let you down. Older cars often miss out on modern updates and might not offer the full functionality that new cars do.

2. Higher Maintenance Costs

Older cars can need more care. When you buy used, be ready for extra maintenance costs. This could include anything from new tyres and brake pads to more frequent oil changes, especially if the previous owner didn’t keep up with regular service.

3. Longer Shopping Process

Finding the right used car can be a long haul. Unlike buying new where you simply pick a model at a dealership, buying used means hunting down the right car, checking its history, arranging inspections, and dealing with paperwork. You might have to visit several places or wait a while to find the perfect match.

Making the Right Choice

Deciding whether to buy a new or used car depends on your personal circumstances, what you need from a vehicle, and your budget. Here are some considerations to help guide your choice.

1. Your Budget

Cars can be pricey, and if you’re looking for a bargain, you might lean towards buying used. But remember, the cost of owning a car isn’t just about the purchase price. You also need to consider ongoing expenses like maintenance, insurance, taxes, and fuel.

2. Your Vehicle Needs

Think about what you really need from a car. Do you need lots of seats for a big family? Do you need a truck for work? List out your essential requirements to determine whether a new or used car would best suit your needs.

3. Your Vehicle Desires

If you have your heart set on a specific model and year, or prefer not to drive a pre-owned vehicle, then buying a new car might be the way to go.

4. How You Plan to Buy

The cost of your new or used car also depends on how you plan to pay for it. Paying in cash means you can avoid interest charges, but if you’re financing, you’ll need to consider the interest rates as part of your overall cost.

Talk to the Car Loan Experts at My Money House

Whether you opt for a new or a used car, it’s important to understand the full scope of your commitment. Remember, a car is not just a purchase but an investment in your mobility and independence. Choose wisely and drive safely!

Ready to hit the road in your new car? At My Money House, we make sure you get the best deal on your car loan. Our experts are here to guide you through every step and find the perfect financing option for you. Contact us today!

Home loans can help you break into the housing market without saving up a fortune upfront. But let’s face it- once the initial thrill wears off, the monthly grind of mortgage payments can start to weigh you down.

What if there was a way to lighten that load?

Good news- there is! Refinancing your mortgage could give you some much-needed breathing room by lowering your monthly payments or even saving you money in the long run.

Let’s dive into everything you need to know about home loan refinancing.

The Basics of Home Loan Refinancing

So, what is refinancing a home loan?

Put simply, refinancing a home loan means swapping out your existing home loan with another (hopefully better) deal, either from your current lender or a different institution.

People usually refinance to save money on interest, lower their monthly payments, or tap into the home’s equity for large expenses. Think of it as hitting the reset button on your mortgage: you get a chance to redo your home loan and leverage better market conditions.

Mortgage refinancing is incredibly popular in Australia right now. Owner-occupier refinancing rose 4.9% to $14.6 million in July 2023- and that’s just for moving to new lenders.

Refinancing doesn’t have to be complicated. Figure out what you need, soak up as much information as you can, and maybe chat with an expert if you need to. Sticking with your current lender might make things even smoother since they already know your financial situation from your original mortgage.

How Does Refinancing Work?

Here’s a simple guide on how refinancing a home loan works.

1. Assess Your Financial Goals

First up, figure out why you want to refinance. Is it to lower your monthly bills, shorten the time you’ll be paying off your loan, or maybe you need some cash for a big expense? Knowing what you want out of refinancing will help steer the whole process.

2. Shop Around for Rates

Once you’ve got your goals noted down, it’s time to shop around. Check out different lenders and compare what rates and terms they’re offering. You can look up financial comparison sites or talk directly to lenders to get the best deal.

3. Apply for the New Loan

After picking a lender that suits your needs, you’ll need to apply for the new loan. This part involves handing over details about your income, debts, and credit score.

4. Property Valuation

Your lender will want to assess the current value of your home to figure out your equity and how much they can lend you.

5. Close the Deal

If all goes well and your application is approved, you’ll close on the new loan. This step usually includes some closing costs and other fees. Once everything’s signed off, your old mortgage gets paid off, and you start paying on the new one.

Benefits of Home Loan Refinancing

As a new homeowner, you’ll want to pay off your mortgage as quickly and inexpensively as possible. Refinancing can help you achieve this goal. Let’s talk about the perks of home loan refinancing, and the different ways it can improve your financial situation.

1. Lower Interest Rate

One of the top reasons to refinance is to bag a lower interest rate. If you can get a rate that’s lower than what you currently have, you’ll end up paying less each month. You’ll also pay less in interest over the lifespan of your loan, which means more money in your pocket in the long run.

2. Debt Consolidation

Do you have a few different debts with varying interest rates? Refinancing can help you bundle those into a single loan with a potentially lower rate. This makes managing your debt simpler because you only have one payment to worry about.

3. Equity Access

As your home’s value goes up, so does your equity. Refinancing lets you tap into this increased value to pull out cash for big expenses, like home improvements or college tuition. It’s a convenient way to finance big projects or important life events.

4. Improved Loan Features

Home loan refinancing can also give you a chance to tweak your loan’s features. Maybe you want a loan with a flexible repayment option or one that offers an offset account to reduce interest. Changing these can tailor your mortgage to better fit your current lifestyle.

5. Switching from Variable to Fixed Rates (or vice versa)

If you’re worried about rising interest rates, switching to a fixed-rate loan during refinancing can give you predictable payments for a set period. On the other hand, if rates are dropping, a variable rate can let you take advantage of lower costs.

Consult My Money Home’s Home Loan Experts

A home loan is one of the largest debts you’ll ever take on. Home loan refinancing can make sure it doesn’t eat away at the joy of owning your dream abode. By understanding what refinancing is and how it works, you can make an informed decision that best suits your needs.

Ready to lower your mortgage payments? My Money House is here to help. Contact us to explore your refinancing options and see how easy it is to get a better deal on your home loan. Get in touch today!

You’ve done it! You have finally found a place to set down your roots. 

The only decision you have to make is — buying a house vs renting a house, which is better? 

It all comes down to your personal choice, including your financial situation. For one, you might need to think about home loan finance if you want to buy a house. Renting, on the other hand, is relatively stress-free than buying. However, it isn’t the same as settling down in a home you call your own.

The bottom line is, deciding between buying vs renting a home is easier said than done. This decision requires careful consideration as it will change the course of your life. Fortunately, both buying and renting have their unique pros and cons.

Let’s learn more about buying vs renting, which is better. 

The Pros and Cons of Buying a House

Let’s start the buying vs renting a home debate by understanding the pros and cons of buying a house. The Australian property marketing is booming. According to recent data, new home sales in Australia increased to 3703 Units in February from 3518 Units in January 2024. In other words, this might be the right time to invest in your dream home. 

However, there are a few advantages and disadvantages to doing so. 

Pros of Buying a House

• Financial Investment: Buying a house is probably the biggest investment you will ever make. However, the value of your property can increase over time. It’s your chance to build equity and wealth over the years. 

• Stability and Security: Owning a home provides a sense of security. You have control over your living space. You don’t have to worry about lease expiring or rent hikes. 

• Freedom to Customise: Unlike a rented property, you can paint, decorate, and modify the house you own. You can change it to suit your taste and needs. And the best part is, you don’t have to ask your landlord to make these changes. 

• Potential Tax Benefits: Homeowners in Australia might be eligible for various tax deductions. For one, you may be able to deduct the interest paid on your mortgage from your taxable income. Property tax deduction is another critical tax break many homeowners can enjoy. 

• Government Incentives: Different government incentives are available for those looking to buy a new home, especially first-time homeowners. For instance, the First Home Owner Grant (FHOG) scheme offers a one-off grant to eligible first homeowners.

Cons of Buying a House

• High Upfront Costs: This is a major drawback of buying a house. These costs often go beyond your initial down payment or deposit. You will have to pay stamp duty, conveyancing costs, legal fees, inspection costs, and other government fees. 

• Ownership Costs: These costs include expenses related to maintaining your property. That means you end up paying body corporate fees, council rates, water, electricity, home insurance, and property taxes. You are also responsible for all maintenance, including lawn care, roof repairs, HVAC system, electrical work, and plumbing. Additionally, you may have to pay for unexpected repairs like fixing a broken window or storm damage. 

• Home Loan Finance: Home loan finance is yet another significant consideration. Most Aussies cannot afford to buy a home outright. You will need to get a home loan. Home loan finances are typically long-term debts (25–30 years). A significant portion of your income goes towards these payments.

The Pros and Cons of Renting a House

The buying vs renting debate leans towards renting if you value flexibility or can’t shoulder the financial commitment of owning. Of course, like buying, renting also comes with a few pros and cons.

Pros of Renting a House

• Flexibility: This is arguably the best benefit of renting a house. It’s easy to move homes if your job location changes when you rent a house.  

• Fewer Financial Burdens: As a renter, you have to shoulder fewer financial burdens. The landlord is responsible for maintenance and repair. All you have to do is pay a fixed rent, so your monthly costs are predictable.  

• Lower Upfront Costs: Renting doesn’t require high upfront costs like buying a house. You don’t have to worry about home loan finance or down payment. The deposit is usually two or three months’ worth of rent. 

• Opportunity to Invest Elsewhere: You can invest the money saved from not making mortgage payments in other financial products. Investments like shares, managed funds, and exchange-traded funds (ETFs) might yield quicker or higher returns.

Cons of Renting a House

• Lack of Equity: When you buy a home, each mortgage payment builds equity in your property. However, rent payments go directly to the landlord. That means you are essentially paying for someone else’s mortgage. 

• Rent Hikes: You will have to face annual rent hikes, which have soared recently. Rents across Australia have risen rapidly in at least 15 years, increasing by 10% in late 2022 and early 2023.  

• Instability: Once your lease expires, the landlord may decide not to renew it. This forces you to move more frequently. It is not only inconvenient but also costly.  

• No Customisations: You can’t customise the house to suit your taste and needs. If you want to make any changes, you will need permission from the landlord. 

• Pet Restrictions: Some landlords may have a strict NO PETS policy. This might force you to rent a house that’s out of your budget. 

• No Tax Benefits: Renting a property comes with zero tax benefits. Unlike mortgage payments, you cannot claim tax deductions on your rent payments. 

Buying a House Vs Renting a House: Which Is Better

There is no way to settle the buying vs renting a home debate.

The final decision rests on:

• Your personal and family situation
• Your ability to shoulder the long-term financial commitment
• Your eligibility for home loan finance
• The type of properties available in your area

If you have a dream home in mind, we are here to help. My Money House specialises in home loan finance for new homes, investment properties, and refinancing.

Move into Your Dream Home

Buying vs renting a home isn’t a decision to be taken lightly. While the former helps build equity and offers stability, it comes with high upfront and ongoing costs. On the other hand, renting offers flexibility and lower initial costs but lacks equity, stability, and customisation. We recommend considering your financial health, career stability, and personal choices before you decide.

Need a loan for your dream home? My Money House has got you covered. We offer exclusive finance for new homes, investment properties, and refinancing – all under one roof. Call 1300 870 838 or fill out our online contact form today. 

When you’re looking to buy a home, it’s important to think about what you really need. What size should it be? What location do you prefer? What amenities are must-haves, and what are just nice to have?

Knowing exactly what you want from a home can help you pick the right place for you and your family. By carefully weighing the pros and cons of each property, you can safeguard your investment and avoid unexpected expenses.

One key factor to consider is the age of the home. Older and newer homes each have their costs, safety features, and maintenance needs that could affect your decision.

So, if you’re entering the new home vs old home debate, we’ve compiled a comprehensive guide to help you make an informed choice.

Advantages of Buying a New Home

A new home is a blank slate, ready for you to make it your own. Let’s explore some of the key advantages of choosing a brand-new construction.

1. Modern Design and Customisation

Several new builds feature open-plan living spaces, state-of-the-art amenities, and energy-efficient systems, all designed to meet the needs of modern homeowners. If you get in early during the construction phase, you might even have the chance to customise aspects of your home, from the floor plan to the fixtures.

With this level of personalisation, a new house can align perfectly with your tastes and preferences. It’ll feel like home as soon as you move in.

2. Less Maintenance and Repairs

Another compelling reason for buying a new home vs an old home is the reduced need for maintenance and repairs. Since everything is brand new, you won’t have to worry about unexpected repairs or replacement costs for years to come.

3. Builder’s Warranty

Most new homes in Australia come with a builder’s warranty, which covers any defects in materials or workmanship for a period after purchase. It can give the mental peace of knowing you’re somewhat protected from potential construction issues.

4. Energy Efficiency

New homes are often built with smart technologies that help reduce your environmental footprint and cut down on utility bills. Features like double-glazed windows, better insulation, solar panels, and energy-efficient appliances can lead to substantial savings over time.

Cons of Buying a New Property

Is a new house always better than an old one? Not necessarily. Here are some downsides to buying a new property.

1. Less Affordable

New properties often come with a higher price tag, because the developer’s profit margin and marketing costs are included in the sale price. Plus, the demand from foreign investors and other first-time home buyers can drive the prices even higher.

2. Limited Opportunity to Add Value

It’s hard to boost the value of a new home through renovations or improvements.

3. Greater Market Risk

When the property market dips, new properties usually feel the impact first. On the other hand, established properties often hold their value better or only see minor price adjustments over time.

4. Limited Land

New properties typically have less land, which means options like subdividing or adding a granny flat are usually not feasible.

While new homes might cost higher upfront, you can leverage financing advantages. Using a home loan calculator can help you understand your mortgage options and payment plans. You can also consult a home loan expert for special loans or grants for new home buyers.

Benefits of Buying an Old Home

Even with the advancements in home construction, many people still prefer old houses for their unique charm. Here’s why homes built 50-100 years ago might just catch your eye.

1. Bespoke Character

Tired of seeing the same house designs everywhere? Old homes break the mould with their unique styles, like Victorians, Colonials, and Tudors. They show incredible craftsmanship and attention to detail you won’t find in most new builds.

2. Mature Landscaping

Big yards tell a story of the past when land was cheaper and more plentiful. Older homes often boast well-grown trees and lush gardens that have been loved for generations.

3. Rich Purchase History

There’s something satisfying about knowing your home’s backstory, including its value growth over the years. While history isn’t always a perfect crystal ball, it does give you a peek into the home’s investment potential. Newer homes can’t always offer that long track record.

4. Established Neighbourhoods

Many older homes sit in the heart of established neighbourhoods, often closer to downtown and all the action. This means more stability and fewer surprises from zoning changes that could shake things up.

5. Lower Initial Cost

All this history and character often comes at a lower price than new houses. You might save a lot on an older home compared to a new one.

Cons of Buying an Old Property

Buying an old home also has its fair share of drawbacks.

1. High Maintenance

Old homes are prone to unexpected repairs and maintenance, which can stretch your budget.

2. Lower Rental Returns

Generally, older properties don’t fetch as much in rent as newer ones do. As a result, your investment might not yield as much income as you’d hope.

3. Less Attractive to Tenants

Today’s renters usually look for places that are modern and packed with the latest features. Older homes, which might lack these new, shiny amenities, often don’t appeal as much to tenants.

4. Lower Depreciation Benefits

Thanks to the tax law changes in 2017, you can’t claim depreciation on previously used fixtures in old homes. This reduces the tax benefits that come with owning and renting out an older property.

Making Your Choice

Choosing the right home- new or old- depends on what fits your lifestyle, budget, and plan. To figure out which one might be right for you:

• Check your lifestyle needs
• Consider your budget or use a home loan calculator
• Look at the location
• Consider how long you plan to stay in the home and how its value might change
• Talk to real estate experts to get insights into the pros and cons of each type of home.
• Visit both to see which type you prefer.

Talk to the Home Loan Experts at My Money House

Unfortunately, there’s no way to settle the new home vs old home debate for good. Different people need different things from their property, and the final choice comes down to what you think fits your preferences best. We hope this guide helped you get a step ahead in your search.

If you need more assistance, don’t hesitate to contact the home loan experts at My Money House today!

At My Money House, we’re here to guide you through crafting the right plan, finding the perfect property, and managing all the details. Let us take you closer to your dream home. Call us today!

At My Money House getting to know your finances, goals and family while supporting you every step of the way is what drives us.
From our initial meeting, to helping you derive the right plan, to securing the right property, to looking after your taxes, insurances, property management ensures you can live your life to the fullest and on your terms.

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At My Money House getting to know your finances, goals and family while supporting you every step of the way is what drives us.
From our initial meeting, to helping you derive the right plan, to securing the right property, to looking after your taxes, insurances, property management ensures you can live your life to the fullest and on your terms.

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Inter Link
Internal Link color code:#337AB7