Purchasing a first home in Australia can be difficult due to a number of factors. One of the main reasons is the high property prices in many major cities and popular areas. The strict lending criteria of the banks also make it hard for first-time buyers to secure a mortgage.
Furthermore, the cost of living and stagnant wage growth also makes it hard for many Australians to save enough for a house deposit. Many people have high levels of consumer debt, such as credit card debt, which can make it difficult to save money.
Low Deposit Homes is a company based in Gold Coast, helping first-home buyers break the rent trap and purchase their own homes with low deposit finance options.
Chaice Paterson, founder of Low Deposit Homes states, "the biggest problem people have is saving a deposit for their first home. The cost of homes has increased dramatically in the past 40 years. This means the deposit required now is significantly larger than at any other time."
Due to the overconsumption of goods and services, a large portion of the population in today's society is frequently taking on debt, making purchases using credit cards, and using "buy now, pay later" services. Utilizing excessive amounts of credit is often a sign that someone is living beyond their means.
Chaice Paterson, the real estate and finance expert, goes on to state that while the majority of people he comes across have the ability to meet their loan repayments, they often aren't able to save the full deposit amount due to income restraints.
He states, "the other issue is that prices continue to rise over time, so when people are saving, the market is outgrowing their savings. Effectively this means the goalposts are constantly changing."
Unless they come from a wealthy background where a family member can gift them a part or all of their deposit or have a guarantor, Chaice Paterson explains they would need to go away and save the deposit for years to be in a position to achieve their ultimate goal of home ownership.
By specializing in the first home buyer market, the company has worked with lenders to create specialized finance products that are not publicly available, helping people make their dreams of home ownership possible. An advisor can provide expert guidance on the first home buying process, from understanding the market and identifying the best properties to navigating the legal and financial aspects of the transaction.
They can also help first-time buyers understand the various loan options available to them and help them find the best mortgage rates and terms. Additionally, seeking advice from industry experts such as Low Deposit Homes can help first-time buyers make informed decisions by providing them with accurate and up-to-date information on local real estate market conditions, property prices, and trends.
