Tips for Renters Who Want to Buy a Home - purerealestategroup

Tips for Renters Who Want to Buy a Home

Renting a home can be a great option for those who are not yet ready to make the big investment of purchasing a house. However, for many renters, the ultimate goal is to eventually become a homeowner. While the journey to homeownership can be challenging, especially in big cities where rents are high, it is possible to increase your chances of getting there by following these tips.

Save, Save, Save

The biggest obstacle for renters who want to buy is saving a deposit. Renters often spend a significant portion of their disposable income on rent, leaving little room for saving. It is also difficult for young people who prioritize lifestyle over saving. However, saving a deposit is critical as banks no longer lend 100% of the purchase price, and it is becoming more difficult for parents or others to be guarantors of loans.

Prepare Yourself Financially

To increase your chances of borrowing and eventually purchasing a home, it is important to prepare yourself financially. Try to avoid racking up personal loans and credit card debt. If you have large credit card debts, it could negatively impact your borrowing ability.

Research the Property Market

Before making a big investment like purchasing a home, it is crucial to research the property market. While you may have an idea of where you would like to live, it is important to be open to exploring other areas that may offer better benefits such as access to public transport, schools, shops, and other amenities. Check recent sales prices and visit properties currently on the market to get an idea of what your money will buy you.

Take a Long-Term View

If you can’t afford the area or property you like, another option is to buy an investment property. This can be a good idea if you have a long-term time frame and are willing to consider factors such as the type of property, potential for growth, income, and the effect of negative gearing. Alternatively, buying off-the-plan can also help you keep saving a deposit while getting a foot on the property ladder.

Be Informed About the Process

Finally, renters should spend time researching the process of buying a home and be fully informed about the costs involved, from stamp duty to legal or conveyancing fees. Prospective buyers should also be aware that banks will not lend on the purchase price but rather on the valuation. If the valuation comes in lower than the purchase price, more of a deposit is needed.


In conclusion, becoming a homeowner is a big investment and a journey that requires patience, dedication, and preparation. By following these tips, renters can increase their chances of becoming homeowners and reaching their dream of having their own place.