Four Cheaper Ways To Get Into The Market

Here are some points that we found useful to guide you through to home ownership”- According to REIWA President Damian Collins

1. You don’t have to buy a ‘forever’ home- Your first home doesn’t have to be your forever home. Buying an apartment, unit or even townhouse means you can live in a more desirable location, closer to the city or coast, for a cheaper price than if you were buying a house in the same area.

2. Find someone to go guarantor- Sometimes, a parent will go guarantor. If you cannot offer a big deposit, a guarantor can be your solution by being that extra security – usually the guarantor’s existing home equity on their property will represent this security.
A guarantor is not expected to make any repayments on your loan, but if something were to happen to the borrower, the lender will turn to the guarantor to make the repayments. This method may mean you can borrow without paying Lenders Mortgage Insurance.

3. Look further away- Buying on the outskirts of town is likely to be more affordable. If you don’t mind living that little bit further away or in a less desirable suburb, then you could be moving into your first home sooner, and for less. Just make sure to look at all financial costs of living on the outskirts, such as travel to and from work.

4. Find a co-borrower- Finally, you could go co-borrower with someone else, which means you are splitting the deposit and sharing the equity between the two of you.

Be sure it is with someone you trust and seek legal advice, as the loan could potentially fall on you if the other party does not meet their loan repayments.

Get started now- If you are thinking about buying your first home, reach out for more information about the options available to you.

Source: reiwa.com.au