Anyone who has rented in Australia knows that it can be a difficult and expensive process. Rental prices are high, and it’s hard to find a place that fits your budget and needs. It’s hard to find good places to rent, and it’s even harder to get a strong enough financial position to buy. So, what do you do?
Today, we have some tips that will help you to escape the rental market and finally get onto the property ladder.
Borrow from Loved Ones
Though many initially shy away from this suggestion (even the thought of it makes many nervous!), it can be a great way to get the money that you need for a deposit. Borrowing from family or friends is often cheaper than taking out a loan, and it can help you to get on your feet more quickly. Be sure to draw up a contract, though, so that there are no misunderstandings later.
While on this note, you should only borrow from loved ones if you are confident that you will be able to repay the money quickly and without any problems. If you are not sure, it is better to investigate other options. Otherwise, you could end up damaging relationships that are important to you.
Consider Government Assistance Programs
Did you know that the government offers a range of assistance programs for people who are struggling to get into the housing market? From first home buyer grants to stamp duty concessions, there are several ways that the government can help you to achieve your dream of homeownership.
Do your research and see if you are eligible for any of these programs; it could be the key to helping you escape the rental market. If you’re not sure if you’re eligible, check the government website or speak to a housing counsellor.
Try a Rent-to-Buy Agreement
If you haven’t seen this before, a rent-to-buy agreement is where you agree to pay a higher than market rent on a property, with the understanding that some or all that money will go towards a future purchase. It’s a great way to get your foot in the door of the property market, and it can give you the time you need to save up for a deposit.
Of course, there are some risks involved with this approach, so make sure you do your research and speak to a financial advisor before signing anything. However, it could mean that you move into your dream home sooner than you thought possible using a service like PublicSquare.
Look for Properties Outside of Major Cities
If you’re willing to move away from the hustle and bustle of the city, you may be able to find more affordable selling prices; this is especially true if you’re looking in rural areas or smaller towns. There are often more affordable mortgage options available in these areas as well. Often, the lower price of property further from the city centre and travel expenses together are still lower than property prices in the city.
Consider a Fixer-Upper
Finally, if you’re handy or know someone who is, you could look for a fixer-upper. These types of properties are often more affordable, and with a little elbow grease (and maybe some professional help), can be turned into your dream home. Just be sure to factor the cost of renovations into your budget before making an offer.
The Australian rental market is notoriously difficult to escape. However, with a little creativity and perseverance, it is possible to find an affordable place to call home. By following the tips above, you’ll be on your way to finding a place that fits your style and dreams!
