29 Jul Buying a property when you’re single
Buying a property is challenging for first home buyers who are single – but it’s certainly not impossible.
One option would be to use the Home Guarantee Scheme, assuming your annual income was less than $125,000 and you met the other criteria. That way, you could enter the market with a very small deposit, without having to pay lender’s mortgage insurance (LMI).
Another option, is you could achieve the same goal by asking your parents to guarantee your home loan: they could use a portion of their home equity to guarantee some or all of the deposit, potentially allowing you to contribute as little as 5% or 0% to the deposit, without having to pay LMI.
Or, on a different note, you could take out a low-deposit home loan and accept paying LMI. While this would add to your costs, it might save you money in the long run if you were able to enter the market years ahead of schedule (because, in that time, prices might rise more than your LMI premium).
Alternatively, you could opt for rentvesting – renting in your preferred suburb and buying an investment property in a cheaper location, potentially interstate. Read more about retnvesting here.
All these options have pros and cons. Please get in touch if you’d like to discuss which option would be best for your personal situation.