You fell you are at the right age. You know buying your first home is a way to start creating wealth through the property market. This is a stepping stone toward your forever home. You are investing into your future rather than filling someone else’s pockets by paying rent. This is a wise decision that will pay off for you in the future.

Unfortunately, many have walked into a bank only to be turned away and being told “you can’t borrow enough for a home loan on a single income in Australia”, come back to me when you have more money. It just seems impossible to purchase a home independently. It is not impossible, but like all good things in life, to achieve success in property you need to have a plan. 

As a first home buyer in Victoria, there are a few options to help assist you getting into the market, one of them is the First Home Buyers Grant that can assist you in getting started on the right financial foot. Take the govt incentives, plus a carefully throughout plan that focuses on what you can afford now, and then you will see that home ownership as a single can be achieved. 

Don’t want to live outside of the city… Perhaps you shold consider looking at a smaller investment property, this can be a smart move financially. Rent where you want to live, as you pay off the debt, you build equity in a property that, ideally, appreciates over time.

Buying a house and being single can be tricky in today’s market, but it is not impossible.

What about something outside the box…There are many Australian’s teaming up with their friends and family to help get them into the property market. This is proving to be an effective way to speedfast the entry into the market and getting started on building wealth through property. 

Have you considered teaming up with someone to help you get into the real estate market?

Take careful consideration when thinking about these possibilities. Let’s break it down.

The Benefits

Splitting the costs is a massive plus as not everyone has a partner or spouse when they are ready to purchase. It means you can get into the property market sooner, but it also might enable you to borrow more and buy a larger block in a better location.

The Risks:

When venturing financially with friends and family, problems can always arise when one party changes their mind. Friendships and family relationships might be complicated or strained if, for example, one of you wants to sell and the other doesn’t. Imagine one needing an additional loan, and their borrowing capacity might be compromised due to the first deal; the pressure is suddenly enormous. 

How To Lower The Risks and Maximise The Benefits

Start by drawing up an agreement. A document like this does not need to be complex, but it requires rules that should be discussed in advance. As you are becoming co-owners, you want to avoid costly disputes and should cover every possible issue you might run into along the way.

Make sure you establish a legal agreement with the help of a solicitor to show who will inherit the property. Consider giving your co-owner Power of Attorney if one of you becomes incapacitated. 

Discuss the Following

– Who will live at the property and on what basis?

– Who determines rent and deals with tenants?

– Make a plan to pay for unplanned maintenance costs.

– How long to hold the property before reselling?

– How to handle various insurance issues and their associated costs.

Once you feel confident you have established an equal partnership with your friend or family member, decide on your co-ownership structure and ensure your finances are rock solid before you rush into a land or house purchase contract.

Rent Converters can help you with this! We offer free education around mortgage options and can assist you in becoming a homeowner with little less than your weekly rent.

Our mission is to help all Australians achieve their goal of owning a new-built home. Talk to our expert consultants today because the right time to get into the market is always NOW.