Here are 4 different approaches that may help to get you on the property ladder.
Can’t afford the area you want?
Rentvesting may just be an option for you. A rentvestor is a home buyer that chooses to rent in the area they want to live, but can’t afford to buy, and buys an investment property in a more affordable area. As with everything, there are pro’s and con’s but this option may suit you at this point in your life.
Shared ownership.
Ever considered buying property with good friends or family? This option may be better suited for those looking to invest rather than live in the house themselves. Buying in a group can be advantageous, but it is important that you get plenty of legal advice and ensure the necessary agreements and understanding of all parties are in place.
Get into a starter home!
It’s tempting to want to buy your forever home straight away, but you could consider buying a starter home now and save up until you can afford your “forever” home? A starter home is something you’d be happy living in for a few years even if you know you’ll outgrow it – It could be, an apartment or even a smaller more affordable house in a neighbouring suburb. Either way, a starter home could help you get into the market.
Consider asking a parent to go guarantor!
If you’re looking to buy your first home but need more security, enlisting the help of a guarantor may be for you. Your guarantor, which is typically an immediate family member, allows the equity in his or her own property to be used as additional security for your loan. The primary security for the loan will be your property, but the lender will also take a mortgage over your guarantor’s property. These are just a few creative options that could be available to get you on the property ladder, but everyone’s situation is different.
If you are looking to modify your existing home loan or looking for a new one, talk to us and we can discuss your situation!