Just because you haven’t found the person of your dreams yet, doesn’t mean that you’re not ready to break out and discover your independence with your very own home. Unfortunately, the latest data shows that singles in Australia who earn an average income might find home ownership virtually impossible in many of the nation’s capital cities.
Though there are a few areas around the country that will allow single average-earners to buy a mid-priced house without the help of another person’s income, if you’re going to want to buy a home in Sydney, you’ll need a salary in the six-figure mark.
Fortunately, we’ve got a few tips that you could apply to help get your single-self onto the property ladder. After all, at Home Loan Cash Back, we’re all about getting you the home of your dreams, and saving you some cash at the same time.
Tip 1: Join forces with Friends, and Relatives
If you’re struggling to get a foot on the property ladder by yourself, then you could consider partnering with relatives, siblings, and close friends. According to recent data, the number of mortgage applicants that include two or more people has increased over the years, from 64% in 2014, to 67% in 2016. Alternatively, the number of single applicants is starting to fall.
Talk to an expert at Home Loan Cash Back about how you can pool your resources and start to tackle the financial hurdles of home ownership. Plus, you can both share the cash back too!
Tip 2: Ask for Help from Mum and Dad
Let’s face it, they’ve probably helped you through various problems in your life, so why not ask them for a little extra help now? A lot of young adults and singles are turning back to their mum and dad for help when it comes to financing their first homes. According to the latest data, the number of parents who have begun to guarantee their child’s home loan has increased from about 5%, to 20% over the last half-decade.
Interestingly, credit unions and banks that know how stressed parents can get at the thought of having to sign as a guarantor on their children’s home loans have started to develop products that reduce the risks by cutting the loan amount down over two different loans. Parents can also help children in more straightforward ways by giving them a cash gift for the deposit. You could always pay your parents back by using the rolling commissions you get by working with Home Loan Cash Back.
Not only will you get cash back immediately to help pay off mum and dad, but you’ll also be able to give them a little something every month for their help.
Tip 3: Consider Other Sources of Income
Buying a home is a significant financial investment. There’s stamp duty, deposits, mortgage repayments, and other expenses that you need to worry about to. As a single person, getting cash back on your mortgage can help, but you might still need to think about whether you can really afford everything without the benefit of a partner’s income to make life a bit easier.
If you aren’t earning enough from your current job to meet with the expenses, think about securing another source of income or getting a second job.
Tip 4: Try Rentvesting
Speaking of other sources of income, if you can’t afford to buy your dream home directly, you could consider rentvesting. With this strategy, rather than buying the home you want immediately, you rent that home and invest your home into another property. The property you buy can be rented out to someone else to give you another source of income, and you’ll still be earning the cash back that you get from Home Loan Cash Back.
With this strategy, you can start living in your dream home immediately, while building a property portfolio for your future too!
