Purchasing property is a daunting endeavour, especially for singles, particularly those who have previously cohabited and shared costs. However, this shouldn’t be a deterrent.
In this blog, we provide essential tips and considerations for singles looking to buy a new home or investment property.
Before considering a home loan application or making an offer on a property, it’s crucial to settle any high-interest debts, such as credit cards. It’s also wise to pay off other obligations, like car loans. Eliminating debt can improve your chances of securing a better home loan and free up funds for mortgage payments. Keep in mind, as a single person, your debts are solely your responsibility, so you must be capable of managing all loans in your name.
Several government grants and schemes are available to Australian home buyers, making it worthwhile to research these options before committing to a specific property. Utilizing programs like the First Home Loan Deposit Scheme, First Home Super Saver Scheme, Family Home Guarantee Scheme (FHG), or First Home Owner Grant (FHOG), along with stamp duty concessions, can lead to significant savings. The availability of these grants and schemes varies by state.
Saving for a home loan can be challenging for a couple, and even more so for a single person. Fortunately, many of Australia’s major banks and lenders provide guarantor home loans for close relatives who wish to help their family purchase property. With a guarantor loan, they don’t need to give you money directly. Instead, they can use the equity in their home as security for part or all of your deposit. Having a guarantor allows you to have a minimal deposit and avoid paying Lenders’ Mortgage Insurance. This type of loan can save you time, but it’s crucial to understand the risk to your family.
Being single doesn’t mean you have to purchase a home by yourself. You can choose to enter a joint venture with a family member or friend, specifying ownership percentages. It’s crucial to document all arrangements and establish appropriate rental agreements if one party will live in the property.
Mortgage protection insurance safeguards you if you’re unable to repay your home loan due to events like unemployment, critical illness, or injury. Income protection insurance covers a portion of your lost income if you’re unable to work due to a disability from illness or injury. Although these insurances come with a cost, they provide peace of mind for a single person with mortgage repayments relying solely on their income-generating ability.
In addition to debts, banks assess your daily expenses when evaluating your eligibility for a home loan. Begin reducing your everyday costs at least three months before applying. Expenses like takeaways, barista-made coffees, beauty treatments, and ride-shares or taxis can quickly add up and impact your ability to service a home loan. Developing a habit of self-sufficiency and saving will benefit you in the long run when it comes to repaying your home loan. injury. Although these insurances come with a cost, they provide peace of mind for a single person with mortgage repayments relying solely on their income-generating ability.
All contents published on this website or otherwise made available by TPG Property Group Pty Ltd to you is general information only and is intended to help you in understanding the products and services offered by TPG Property Group Pty Ltd. The information does not take into considerations of any particular investment objectives or financial situation of any potential reader. It does not constitute, and should not be relied on as, financial, investment, legal or any other professional advice or recommendations both expressed or implied. It should not be used as an invitation to take up any investments or investment services. You are advised to do your own due diligence when it comes to making financial and investment decisions and should use caution and seek the advice of qualified professionals such as accountant, lawyer, or other professional advisors before acting on this or any information. TPG Property Group Pty Ltd, its employees or contractors do not represent or guarantee that the information is accurate or free from errors or omissions and therefore provide no warranties or guarantees. You may not consider any examples, documents, or other content on the website or otherwise provided by us to be the equivalent of professional advice. Nothing contained on the website or in materials available for download on the website provides professional advice in any way. TPG Property Group Pty Ltd disclaims any and all duty of care and liability and assumes no responsibility for and you will indemnify TPG Property Group Pty Ltd against any losses or damages resulting from your use of any link, information, or opportunity contained within the website or any information within it.
