Move back home
The biggest hurdle for first home buyers is saving a sufficient deposit for a home. If you’re renting, you are essentially paying off someone else’s mortgage – that’s money that could be spent on your own property. Consider moving back with your parents as this can make a significant difference in your ability to save for a deposit.
If you can’t afford to buy a home and live in it, or the area you can afford to buy in is not where you want to live, consider using your property as an investment. This allows you to rent where you do want to live or stay at home to help pay off the mortgage. Your investment property can be used as leverage with which to buy your next home.
Seek financial assistance
You can buy a property sooner by receiving financial assistance. This can be in the form of a monetary gift from your parents to boost your deposit amount. Alternatively, you may want to think about having a parent or family member go guarantor on your loan. Both options will help you avoid paying Lenders’ Mortgage Insurance – a cost that protects the lender should you default on your loan.
Be willing to compromise
As a first home buyer, you need to be willing to compromise and accept that your first property may not be the dream home. This may mean buying in a suburb that’s less desirable or further away from work, buying an established home that is older or smaller, and opting for an apartment over a freestanding house. At the end of the day, the most important thing is getting onto the property ladder because once you’re on, you can progressively upgrade into your next place.
Buying your home alone is challenging, but with careful planning and the right support, it can definitely be achieved.
The key to getting into the market is to be well informed so do your research and speak to a professional.
Your local Mortgage Choice broker is available to answer any questions you have and to empower you to confidently make your purchase decisions so give us a call today.