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First home owners attempting to break into the property market are facing a pretty tough time. With property prices increasing and average wages remaining stable, buying a first home can seem like an unattainable dream for many Aussies.
Today we take a look at the top seven strategies Australians are using to enter into the property market sooner rather than later.
Cutting spending
This is an obvious strategy for anyone looking to enter the property market. Reducing your spending in order to save up for a deposit can be difficult, but it is typically necessary to keep track of your finances and make a budget to reach your goals more quickly. 31% of Aussies said they reduced their spending in order to save their deposit.
Buying a smaller property
Compromise is becoming more of a necessity rather than an option when it comes to buying your first home. Buying a smaller property that you can afford, rather than the more expensive property you desire, is a good strategy to get started in the property market. And remember, it's not forever!
Buying in a more affordable suburb
Buying a house located in a more affordable suburb helps first home buyers to overcome the first and hardest step. By compromising on location, buyers are able to break into the market, giving them more flexibility to upgrade into a bigger and better premise in the future.
Mortgage sharing
Finding it difficult to come up with a deposit by yourself, or worried you'll struggle to make repayments once you've secured a loan? Mortgage sharing with a friend or family member may be for you. 7% of Australians have opted for this strategy.
Seeking financial support from family
If the option is available to you, seeking financial support from your family to help get your deposit together can be a great way to break into the market.
Moved home to save
Although moving back in with your parents may not seem like the greatest idea to you, it's a viable option to help you quickly save up for a deposit. After all, the money that you're paying towards rent could then be saved. And with today's property market being so difficult for young people to enter, it may just your only good option.
Taking advantage of Government grants
Depending on which state you live in, there are grants available that aim to assist first home buyers getting into the property market. Take a look at our article on the grants available in SA and the NT.
Even if you're not sure about your finances, talking to a mortgage broker can help you to get on the right track to buying your first home. Contact Verve Group Finance today on (08) 8120 4877 or email finance@vervegroup.com.au
