When it comes to buying a property, it's easy to put it off.
The timing isn't right; the economy is depressed; you're waiting for the perfect home. You're worried about leaping into homeownership, so you think of all the reasons not to do it. And yet when you question why you're not getting onto the property ladder, you might find that your excuses don't stack up.
'I don't have enough for a deposit.'
We've heard this said many times, yet we often find it to be incorrect. The deposit needed to buy a property can vary according to many factors like your history of genuine savings, the price of the property and your credit rating.
By paying Lenders Mortgage Insurance (LMI), you can get into the property market with a deposit as low as 5% of the purchase price. Although you may be reluctant to pay LMI, consider that it gives you the means to enter the property market sooner rather than later.
Some lenders will even waive LMI altogether. For example, if a family member goes guarantor, or your occupation is low risk.
As your mortgage broker, we can help you calculate what you can afford to borrow on the deposit you've saved. We'll work closely with you to determine which low deposit options suit your current financial position and ownership aspirations.
'I'm waiting for the market to improve.'
The truth is that when to buy is not nearly as important as actually buying. Provided you're prepared to hold onto the property over the long term; you needn't worry too much about temporary shifts in prices.
Every year delayed is another missed opportunity. It's highly unlikely the stars will align all at once – the market, your finances, interest rates, the right property – to create the perfect time to buy. Know that there are plenty of successful and happy property owners who have purchased across all phases of the property cycle.
'I'm worried about things going wrong.'
The more knowledge you build about something, the less you fear it. It's the same for buying your first home: it may seem daunting at first, but the more you educate yourself about the process, the less complicated it looks. Use the internet, your mortgage broker, your local real estate and any experience friends and family may have, to find out as much information as you can about the property market. Remember a little knowledge goes a long way!
'I haven't yet found my dream home.'
You could be searching for years and never find what you’re looking for. There's a time to lower your expectations or buy a fixer-upper that you can shape to your preferences. If a low budget is an issue, speak to us about possible solutions for boosting your horizons, such as co-ownership and rentvesting.