It is no secret that it is currently harder now for first home buyers to get into the property market than for any other generation, the prices of houses have risen and yet wages have stayed the same. Regardless of this, there are still ways to get yourself into the property market so here are 3 ways that could help you to get your foot in the door.
Borrow money from your parents
Depending on the circumstances of your family or your parents may be able to help you secure a deposit to buy your first home by releasing equity from the value of their own home. Older generations, unlike first home buyers today, benefit significantly from the rising housing prices, meaning they may have the financial security to willingly help you. If you choose to follow through with this tactic remember that although your parents can help you with the deposit, it is up to you to continue paying the mortgage repayments.
Buy outside your comfort zone
When purchasing a house you may need to consider buying outside of the areas in which you work/socialise/currently live. Understand that just because an area is more affordable it doesn’t necessarily mean it is of lower quality. In line with this, some suburbs are simply more expensive because of the elitist schools in its proximity, and if you are not buying a property to cater to the needs of school ages children then these types of areas will not need to be a priority for you. Remember, when looking at areas you are not overly familiar with doing your research and see if there are any planned developments which will improve the area.
Buy with a friend
It is becoming more and more common for people to team up with their siblings or friends to purchase a house with their combined incomes. For many a single salary is not enough to save for a deposit, but when teaming up you can effectively double or even triple a single salary. This method of purchasing does come with rewards but also risks. It is important to understand the roles and responsibilities of all parties involved. It is commonly warned that although you only own a percentage of the property you will absorb 100% of the debt.
To learn more about the current property market or to get in touch with a buyer’s agent contact us today!