Australia is among the world’s worst for young property buyers, with figures dropping significantly below the average for home ownership. The results of a survey of 9000 millennials across nine countries, may not come as much of a surprise to many young Australians unable to afford to buy. It also revealed that only 28 per cent of Australian respondents had bought their home compared to a global average of 40 per cent. While it might be the Australian dream to own our own home, many younger Australians are priced out of the property market in their area.
Home Loan Could Be Key To Affording Own Home
For first time buyers who have enough money saved for a deposit and who are also earning a regular and steady income, then a home buying loan could just be that final piece of the puzzle to make their home buying dreams a reality. But first, they must make sure they understand what taking out a home loan will mean and whether it’s the right thing for them. Then they are in good position to contact a few lenders to get an idea of how much they can borrow. This will give them a better idea of what their budget will be for buying a home.
Buy Together To Share Home Ownership Costs
Despite many young Australians feeling disillusioned with the idea of owning their own home, those that do have some spare cash are choosing to look at alternative methods of getting on the property ladder. It may not be their ideal route to home ownership, but many young people are choosing to buy with friends in order to finally get on that first elusive rung. It can be a great way to share the costs and burden of buying a home.
Rentvesting Could Keep Home Buying Dream Alive
Rentvesting is gradually growing in popularity as it offers new home buyers a more affordable and realistic alternative. Instead of buying the particular property they ideally would want, they are instead renting in the areas they want to live and investing their money in properties in cheaper areas. This means they can rent out their investment home, which helps to cover their own weekly rent payments, with the view of selling the property at a later date for a capital gain. While it will mean that young buyers will have to make certain compromises, this process does allow them to live the lifestyle they want, while still getting them on the property ladder and building up a small property portfolio at the same time.
There’s no doubt that with house prices rising and salaries not budging, it can be a difficult time for young people wanting to buy their first home. But with some creative thinking and some compromise, getting on the property ladder can be more than just a dream.