I Bought My First Property…
It was Lewis Street. A two bedroom ground floor unit, hadn’t been updated since it was built in the 1970’s. It had good sized rooms and it was located in a well maintained unit group and I had some great neighbours – some we are still friends with today!
Now I have to say I did have some help from my parents with the deposit. But I still was the one that had to pay the mortgage, council rates, utilities etc. As well as fund a renovation on the property.
This was like being thrown in the deep end of the pool and you don’t have any idea how to swim and but you have some small floaties.
So there I was at 22 and owning a property. I had my credit card maxed out. I really started to feel like I was just about to go under.
That’s when I decided I needed to take control of my finances and within 6 months my husband and I (we were just dating at the time) were able to buy another property – our first investment property!
I know that many of my friends and a lot of Australian’s are struggling unable to purchase their first home/property. But if that is your goal you need to be focused at it and truly work towards it.
The banks are much tighter at lending money now than they were 8 years ago, as I had only just started full time work when I bought Lewis Street. Now they need to see evidence of savings and a much longer work history.
So if you’re thinking of buying property but you don’t have a deposit here are some of the options that I have researched.
HomeStart (http://www.homestart.com.au) If you’re in South Australia there is a product is this organisation HomeStart which is owned by the South Australian Government to help people get into the housing market. Here you can potentially get a loan with as little as $3000.00 in the bank or 12 months excellent rent history. Check out their website for more details. Check your state to see if they have a similar scheme!
Guarantor – having a parent go Guarantor is another way to have a deposit, what generally happens is that the parent/s use the equity in their home as the deposit for the home that their child is buying. There are negatives to this is that the parent is still responsible for the loan against their property, so if the child defaults on the loan to the purchased property then the parent/s home is potentially at risk.
Your other option is to just SAVE, SAVE and SAVE…
By saving as much as you can for a deposit the less you then have to borrow. How to save money for a deposit well that’s simple. Start with a budget, have a plan to pay off any existing debt, and then put together a saving’s plan. If you need help to set this up this is exactly what I go through in the Bells Budget E-Course.