Welcome to Top Tips Tuesday!
This week’s tip is for those that are currently renting and considering getting into the property market.
I speak to a lot of people looking to get into their own home and their biggest challenge is getting a deposit.
One option is to use a parental guarantor. Lenders allow borrowers to use equity from property owned by their parent or parents to serve as security or collateral for a home loan. In other words, a parent or both parents become a guarantor for the borrower’s home loan.
Another way is raising the deposit is to borrow some money. When I bought my first property there was a bit of a shortfall, and my employer at the time lent us the funds and then we paid it back over a short-term loan.
I’m sure many will be aware of the rental crisis that we’re currently experiencing. And especially in Southeast Queensland, there are very sad stories on the news every day about people living in tents and families being, disjointed because of this rental crisis.
The population growth here is so strong, with 1,000 people per week currently moving to Queensland!
I can only see this situation getting worse for those currently renting.
If you’re having problems with a budget, see a financial planner, there’s a lot of support online now to help you save towards that deposit, even if it’s not possible today, put a plan in action to work towards that goal of the deposit.
See a finance specialist, see what you can potentially borrow, and look at the ways of getting into that market.
I met with Russell and Helen, first home buyers this weekend that are getting close to retirement.
They didn’t give up the dream of home ownership. I recommended a finance specialist that could help them with the loan and helped them to secure a property within their borrowing capacity.
When I saw Russell and Helen in their brand-new property on the weekend, they mentioned that their rent was $600 a week in their old house.
The property is having a slight renovation and is going to be listed back on the market and they’re expecting somewhere around a thousand dollars per week. So that’s an increase of $400 per week, which is massive.
If you would like to see Russell and Helen’s story click here.
If you are thinking of getting on the property ladder but are not sure how much deposit you need to get started reach out to me and I will forward you to one of my recommended finance specialists. You can book a time in my calendar by clicking here.
Regards,
Geoff Tomkins
Buyers Advocate
PH: 0404 852 781
