Becoming a homeowner has been the dream of most Australians for generations.
Today’s first homebuyers not only have access to more information and expertise but also to a variety of different loan products to help them achieve that dream.
Plus, more and more first-time buyers are becoming investors before they own a home.
First homebuyers are a vital cog in the real estate wheel and they can become property owners with the right advice and expert assistance.
A new first-time buyer investment strategy is the concept of rentvesting.
Rentvesting involves buying an investment property but continuing to rent in the location of your choice.
This strategy has a number of positives, including investing sooner rather than later; renting in locations that first-time buyers probably can’t afford to buy; and growing equity in income-producing assets which can be used to invest again or to buy a home down the line.
By adopting a rentvesting strategy, first-time buyers can start their property investment journey sooner, which will have long-term financial benefits for them.
One of the most popular first-time buyer home loan products is a guarantor loan.
The reason for their popularity is simple – saving a deposit for your first property has always been difficult.
However, as the name suggests, this type of loan uses a guarantee from another party – usually mum and dad – that acts as the deposit.
Parents often use equity from their own homes or portfolios to guarantee the entire, or a percentage, of the deposit for their children.
That way, first-time buyers can not only purchase a property more quickly, they may also avoid Lenders Mortgage Insurance, too.
Please complete this 3 minute form & provide us with your brief financial background. We will then come back to your within the next 24 business hours with an estimated range of your borrowing capacity
Download this handy guide that the team at Intuitive Finance has put together for you.