With rising interest rates and steady property prices, if you are looking to try and time your purchase and enter near the bottom of the market, it’s a good time to start getting your ducks in a row so you can get into the property market.
For the sake of the exercise, I’m discounting some of the more traditional options like guarantor loans (getting help from your parents or in-laws) because odds are you’ve already considered them, or you can’t really use them. If you are single and aren’t sure what that path ahead involves, then here are three unconventional strategies you might be able to use to get into the market:
Rather than buying a home to live in, you purchase a rental property and continue to rent and live where you want. Arnold Schwarzenegger famously used to surf on his friend’s couches while owning rental properties while building his wealth before he finally bought his own place.
This circumvents the problem a lot of first-time property buyers have of not being able to find a place they can afford in a location they want to live.
The big drawback is you lose can’t claim benefits such as the First Home Owners Grant or stamp duty concessions when purchasing an investment property, although you may be able to claim them later when you purchase an owner-occupied property. Check with the relevant state revenue office to check this since each state can have different rules.
Find A Friend or Two
If you have some friends who are in a similar position to you with cash saved up but don’t have the extra incomes you need to be able to buy, then it might be time to team up and buy a place together in a location that you want to live in.
This will take a fair bit of planning and discussion, given that a mortgage means a lot of commitment and you may end up needing to sell when you don’t want to.
That said, lenders are now seeing this as a legitimate path to property ownership and offer products specifically for this type of situation. Just 10 years ago, these sorts of options didn’t really exist.
A lot of people are stuck renting because of their own rigidity about where they want to live. It might be they want to live in a particular suburb or don’t want to own a unit or apartment. It might be they want to be close to friends, work, or something else.
But if you want to get out of renting and start building equity through property, some flexibility may be in order. Start with something that works and is affordable knowing it’s not your forever house and understand you may need to upgrade a couple of times before you get to the right place.
The upside with this strategy is you get your first home buyers grants and stamp duty concessions.
Regardless of your circumstances we can help you get your foot in the door of the property market call 1300 661 211 or go to https://mortgageworldaustralia.com.au/contact and we can make time to help you started on your property journey.