It can seem almost impossible for first-time buyers to get onto the property market today, especially if you’re under 30 and have limited funds available. The average price of a house in Australia is now in excess of half a million dollars. Owning your own property before you are thirty can seem like an impossible dream.
However, there is always a way to make things happen, you just need to figure out what works for you.
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Prize Draws
There is a limited chance of success when dealing with prize draws and lotteries. However, that doesn’t mean it isn’t worth trying. After all, someone has to win.
The trick is to choose a prize draw or lottery that offers a substantial prize or the equivalent that will help you to get onto the property ladder.
For example, the Surf Life Savers prize home lottery gives you the opportunity to support the valuable work they do saving lives. It also provides you with the possibility of winning a house!
Shared Ownership
There are several property developers that will offer you part ownership of a property. This reduces the value of the property and the amount of deposit you need, potentially making it affordable. Of course, you won’t own the entire property so will be limited regarding what you can do inside and you’ll need to pay rent on the part you don’t own.
You may prefer to see if a family member or friend is willing to buy a property with you. Again, this reduces the value of your half of the property and makes a deposit potentially affordable.
If you do choose this option make sure you have a contract drawn up so you and your family member know exactly where you stand.
Invest Instead
If you can’t afford to buy by yourself then consider investing in property. You can purchase a rental property and rent it to tenants. They will effectively pay the mortgage, allowing you to purchase a house for nearly nothing. Naturally, it will take time before the house is officially yours. But, it will gain equity which can help you buy another property in the near future.
Check Grants
The government frequently offers incentives for first-time buyers. Check the official website to see if there is anything you can get. Most states offer $10,000 or more to first-time buyers, which will really help with getting your deposit together.
This is effectively free money, it’s worth taking a look.
Go Off Plan
It is generally cheaper to purchase a property off-plan. It means the property hasn’t been built yet, allowing you to get it for less than it will be worth. This may be enough of a reduction to make the property affordable and get you on the ladder. Of course, you’ll have to wait for the property to be built before you can move in.
Don’t forget, properties out of town are almost always cheaper than those in town. Consider whether this is a possibility for you.
