The world is not an easy place for your humble First Home Buyer. Prices are going up, rents are going up, the amount they can borrow is going down, and the amount of deposit they need is going up.
You wouldn’t blame someone for thinking this is all too hard.
The problem for many people is if they can’t find a way to overcome these issues, there is a real chance they may never buy a home in their lifetime.
What if I told you the real reason you can’t buy a home is because you stop trying just a bit too early?
It seems too simple, doesn’t it?
In some ways it is, and in some ways, it isn’t.
Over the last 50 years, the trend in housing has been prices have gone up, block sizes have gotten smaller, and affordability has moved outwards. In other words, you pay more money for a smaller block that is farther away.
What is making it particularly difficult for First Home Buyers at the moment are the interest rates going up, causing the amount of money they can borrow to go down whilst inflation is increasing the cost of living, making it even harder to save up an ever-increasing deposit.
People in real estate and finance know this, making it much easier for them to choose to work with an established buyer. Helping a First Home Buyer is a lot of hard work and only a few companies specialise in First Home Buyers because of this.
Less than one-third of the lenders in Australia currently work with the government’s First Home Loan Deposit Scheme which is aimed specifically at helping First Home Buyers get into the market.
It’s tough.
But it’s not impossible.
A slight adjustment in mindset most people need to have is a shift from thinking “Can I do it?” to “How do I do it?”. After getting told ‘no’ by a broker, a lot of First Home Buyers just accept it.
What I’m suggesting is that you shouldn’t.
Find out why they are saying no, and find out what it is you need to do. Go and get a second or third opinion. Keep searching until someone gives you a clear plan of attack for how to get from where you are to building memories in a home you love.
For every problem, there is a solution.
If your income isn’t high enough, get a pay rise, get a second job, or find a friend or a family member who wants to go in on the house with you.
If you haven’t got enough deposit, see what support is out there to assist you.
Get a plan and get prepared.
You wouldn’t go on a first date without brushing your teeth and combing your hair so you shouldn’t apply for finance from a bank without knowing what your credit score is or what the minimum income and deposit requirements are.
Similarly, if you asked someone out and they told you no, you wouldn’t give up on dating for the rest of your life. You would dust yourself off and then find someone else.
Buying your first home is hard but it is not impossible.
Be determined.
Be prepared.
Don’t take no for an answer.
