The Property Contradiction of 2013
The Property Contradiction of 2013: August 23, 2013
“Affordability remains a challenge for those yet to enter the market, with 70% of non property owners believing the dream of home ownership to be unrealistic” Gentworth’s Chief Commercial Officer, Bridget Sakr (Genworth is a leading lenders mortgage insurer)
source: The Australian August 2, 2013
This is the quote that greeted me when I picked up a copy of our national newspaper. I had to re-read it a couple of times because the preceding paragraph noted how much more affordable it was to buy a property and service a mortgage given our historically low rates of interest. The apparent contradiction of these two paragraphs was astounding and razor sharp.
I suggest that the 70% of non property owners have been conditioned into thinking that buying a property can only be done through the most predictable narrative: through an agent, through auction, private treaty or off the plan. This has been the buying and selling staple for many, many years. Of course, before you can even get to this stage, you need to visit the bank manager or meet with a broker and see if you qualify. By the way, do you happen to have a lazy 20% of the purchase price hanging around? No! Then statistics show that you will need to save for 5.8 years before you can make that appointment with the mortgage broker.
No wonder 70% of aspiring homeowners are thinking the goal of homeownership is unrealistic! Let’s all take a breath. Throw off the shackles of conventional thinking and the rigidity of conditioning. Understand that ther are other ways – strategies that switched on people doing it differently and securing their own sweet stake in the ever spiraling property market.
Top of the list is a strategy much favoured by Home Addressed: co-buying. As the name suggests, it means buying with someone and if you can’t buy with a sibling, friend or family member, then find your way to the Home Addressed site www.homeaddressed.com.au and check out the profiles of people keen to pair up and move into their own home with their co-buying buddy.
Those who are adopting this strategy are securing their future. They are not only getting a foothold into property but are exercising greater choice as to where they want to live simply because they can pool their resources: deposits, borrowing capacity and sharing costs and bills.
The time to make your move is NOW! The longer you wait, deliberate and postpone, the more challenging it will be to make the leap from renter to home owner.
For those daunted by the prospect of buying with others, the fear and apprhension can be significantly mitigated by a co-owners agreement. This agreement pre-empts possible challenges that could arise and offer peace of mind and the confidence neede to invest in a co-buying strategy.
Remember, co-buyers can amalgamate their resources and make the triumphant bid at auctions and steer the course of their own destiny.
Hop to it, as time coupled with action are your best allies.