When my husband and I split in 2019, I brought him out of our jointly owned home.
I was absolutely terrified.
Low equity, a large loan, one income, a business that was still growing, and an uncertain property market.
I remember the conversation with one of my trusted advisers at the time who encouraged me to take the leap.
And when I ran the numbers I realised it was possible. Tough, but doable.
That decision has changed the course of my life, and set me up for absolutely everything I now have.
And if I had a dollar for every time someone said to me - “I’d love to buy a home but I can’t because I don’t have a partner” I’d have a new house deposit!
The idea that homeownership is only a game for couples is one of the biggest myths in real estate today.
While buying solo does have it’s own set of rules and hurdles, waiting for a partner to start building wealth and a base to move forward from is something I’ve seen too many people do and it’s often only because they don’t know the pathway
Yes, there are challenges.
Yes, you still have to prove to the bank that you can afford to repay the loan
Yes, it means the home loan is your responsibility
But there are also some silver linings that a lot of people don’t consider.
You have total control over the purchase.
Paint the walls pink if you like. Have a dog. Buy a house with two bedrooms instead of three just because it’s cute.
For me, it was about having a place to call home where I felt safe, at peace and could rebuild my life.
I’ve had a lot of conversations (particularly with first home buyers) who are in a position to buy by themselves but haven’t considered it and are looking for other people to share the cost, the decision making and the outcomes.
And it’s not for everyone.
But it might be for you, so here are a few tips to make solo buying work.
1. Adjust the scope, not the goal
Often something that holds new solo buyers back is the cost. They might not be able to buy exactly what they want and that might put them off.
But some compromise at the start can actually have you in a better position in the long term, so consider some other ways you can succeed.
The first property doesn’t have to be a dream family home. Look at well located apartments or townhouses, or aim for the smallest home on the best street.
Or you could even consider rentvesting if your deposit allows. Sometimes if buying where you want to live is out of reach, buying an investment property in an affordable area while continuing to rent where you live can also work.
Because so many people now work from home, this is also a legitimate option for many buyers who want to live out of region - for example I have clients who commute from Thames or Whangarei to Auckland a few times a week.
2. Maximise your deposit and borrowing power
Make sure you investigate what you’re eligible for in terms of government schemes (the First Home Loan) is a key one, and if you have a lower deposit making the most of those options to keep the cost down.
If you have existing debt, often reducing or clearing it can make a huge difference to borrowing power and set you up for success.
In some cases, depending on your overall deposit, repaying existing financial commitments or reducing outgoings can be a defining factor.
I actually repaid my Student Loan to open up more borrowing power - and it was one of the key things that make things work for me. Again not for everyone, and you do need to be happy repaying a non-interest bearing loan to pay interest on another, but it made a huge difference in my case.
3. Creative ways to boost income
Often solo buyers feel limited being on one income but they’re quite happy to live with other people.
Many lenders are happy to include income from boarders or flatmates as long as the house is large enough, and every policy is a little bit different.
I’ve even had people buy a home that’s a little bit larger and the majority if not all of their home loan is actually paid by their boarders or flatmates.
The major takeaway here?
Too often I’ve spoken to people who just don’t know where they stand.
They’re great at saving
They’ve built up their deposit over time and also have KiwiSaver
They work fulltime
But they’re still waiting for one day
If I hadn’t taken the leap to buy my ex-husband out of our home, I wouldn’t be where I am today. I’m grateful I had the knowledge and the people around me to make it happen.
It starts with knowing the numbers, and many people are quite surprised to hear all the options on the table for them.
You don’t always need someone else to start building a financial future - just a clear plan, a bit of courage and the willingness to take the first step.
