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First Home Owners and Co-buying Property

First Home Owners and Co-buying Property: September 19, 2013

As governments hastily withdraw or cut back first homebuyers objectives, the first homebuyers market is awash with a lack of confidence and home ownership dreams in tatters.

The Australian Newspaper 4th August, reported that “a surge in prices as the cheaper end of the housing market could see the dream of owning a house slip away for the first home buyer, despite a likely cut next week in already historically low interest rates.

First home buyers are competing with small residential investors. On a $650K home there is a rental expectation of a $600 pw return. RPData reports the bottom 25% of the housing market has risen 5.6% since values hit a low two years ago. Perth prices increased 4.4% in 3 months to July 2013, Sydney 3.7%, Melbourne 2.4%, Hobart 2%, Canberra 1.4%, Brisbane/Darwin and Adelaide had fallen marginally. Real estate agents have been reporting that first home buyer purchases were increasing, co-funded by parents.”

This is the sobering reality faced by first homebuyers. Co-funded properties make home ownership a tangible proposition. Those who do not have the good fortune to draw upon the equity provided by parents have been given new hope by the very pro-active website, Home Addressed.

Home Addressed allows browsers to scan the active profiles and search a possible match with whom to pool resources to buy a property. Decide whether you want a co-buddy or investor then send an ‘opportunity knock’ this alerts the chosen profile that you are interested in starting up a chat and possible meeting with a view of co-purchasing a property. Once your opportunity knock has been acknowledged, you can purchase a key for as little as $5 or unlimited keys for $99 and open a productive dialogue that will hopefully lead to a fruitful union.

Don’t be daunted by this approach to buying property. Treat it as a business proposition, settle your ‘agreement’ with a co-ownership contract (can be purchased through the Home Addressed site) decide on an exit strategy, usually a minimum of two years and then buy, buy, buy! Remember, co-buying property is a smart way to buy that will give you the advantage you need to get yourself into the market. It really makes sense!