Who are you going to buy with?
For most first home buyers, at least two people being involved will open up a heap of options for you, unless you have a very significantly high personal income or a very good deposit. So plenty of mix and match options here.
Buy by yourself
- Complete control over the process
- Can make decisions without input from other people
- Less risk as no other people involved
- Will likely mean a lower purchase price
- May mean not buying for a bit longer (more time to save/build up income)
Buy with a partner/husband/wife
- Higher purchase price likely
- Therefore more choice to get what you want
- Shared income and expenses
- May need to account for a plan if deposits are unequal
- Shared decisions (could be positive or negative)
- Less personal choice
Buy with a sister or brother, or other family member
- Security of family - could contribute family money and would be safe
- Need to get along well, have shared values and attitude to money
Buy with a good friend
- Shared income
- Shared deposit (could get you to 20% and interest rate would be cheaper)
- Risk of putting in funds for deposit to share if deposit is unequal
- Will need an agreement to confirm the exit plan
Buy with parents
- Usually very good deposit, or equity in Mum and Dad’s place (see deposit for more info on this)
- Therefore cheaper rate
- Often slightly better property possible
- Less choice - depending on whether Mum and Dad want to be in on picking the house!
- Can be tough to unwind if Mum and Dad’s property is used as equity for the purchase.
So what's the best option for me?
Well, that depends a lot on your situation and we're here to give you some advice around what will work best, as each situation has some pros and cons.
We'll review your income, existing debt, and deposit - and suggest some ways to get you into your first home quicker.
Contact us and tell us a bit about you and where you're at in the process, and together we'll make the journey to your first home easy!