::MESSAGE::

::MESSAGE::

Updating…
Please wait while the changes you have made are submitted. This may a take a few minutes depending on the nature of the update

 

How Much Deposit Do You Have?

How Much Deposit Do You Have?: February 06, 2015

In the words echoed by a former Prime Minister: Life wasn't meant to be easy. But the question is: How hard does it have to be, for the first home buyer?

I have been writing these blogs over an extended period of time and I find myself retelling the same message, except, each time it seems to be a little harsher. The apparent truth is that the first home buyer is stan

ding on the shoreline watching the ship pull up anchor and sail for the distant horizon. With it sail away dreams, hopes and tenuous aspirations of home ownership. It is a daunting tale that of home ownership in Australia. I do not want to regurgitate the obvious, however, it is interesting to read that the average first home owner has around $30,000 with which to start the home ownership quest. An article that appeared in the Herald Sun 27th January 2015, had this to say on the subject:

 

A small number of first-home buyers are being given the green light to borrow up to

95 per cent of the value of a property.

MELBOURNE'S average first-home buyer is mustering a deposit of about $30,000 before entering the property market.

For most it represents a 10 per cent deposit, which leaves 10 suburbs where they can buy a house and 19 where units or apartments are within reach.

Opportunities to buy houses can be found in Millgrove, Frankston North and Werribee, while units can be bought in suburbs including Melton, Springvale South and Epping.

A small number of first-home buyers are also being given the green light to borrow up to 95 per cent of the value of a property, opening up properties worth substantially more for the same-sized deposit, though with significant financial risks.

But with no suburbs in metropolitan Melbourne with a median price at or below $150,000, first-home buyers have little chance to reach the 20 per cent deposit required by most lenders to avoid costly lenders insurance fees being added to the loan.

And while first-home buyers are taking longer to build a deposit, many are making sacrifices to their normal lifestyle in a bid to make up even a 10 per cent deposit, cutting back on shopping, booze, movies and going out for meals, said RAMS spokesman Chris Thornton.

There are several ways of boosting your deposit, the most effective of these being home co-ownership. Teaming up with someone is the single most dramatic way of fast tracking into property...that's unless your parents give you a helping hand!

By teaming up with someone, you can double your deposit suddenly making that $30K into $60K giving you more buying power and splitting costs to make home ownership a sustainable propostion.

The other way of doing it is to forward an application to Home Addressed in anticipation of the First Home Buyer Program. Those who are eligible will have access to a 20% deposit! Yes, you read it correctly. 20%. The final details are being prepared but we anticipate a launch date about two to three months away. If you want to beat the rush on the program, then we suggest to fill out the online application and sit tight! You can access this http://goo.gl/AyOACk