Trying to buy property in Melbourne, or anywhere in Australia right now, isn’t easy. And it gets a whole lot harder if you can’t show a loan provider TWO full time incomes. But while Australia’s home loan system is definitely designed for dual income couples, it doesn’t mean solo home buyers can’t get a foot in the door.
It’s tough, but buying a home in Melbourne as a single person can be done if you take a different approach – despite single buyers on average salaries being priced out of the property market in 99% of capital city suburbs throughout Australia.
Rethinking where to buy, what to buy, and how to buy is necessary when you’re a solo home buyer and the traditional home loan process isn’t on your side. Broadening your horizons on where to buy may help you get a foot in the door, remembering it doesn’t have to be your forever home. You might even consider relocating to a regional area for a few years if you’re not tied to the metropolitan Melbourne area for work. And while you might prefer a traditional three bedroom property, buying a one or two bedroom townhouse, unit or apartment may be the best starting point that gets you out of the rental market and into home ownership.
There are a range of federal and state home buyer schemes and grants to explore, which may help. Check out the possibilities with Housing Victoria and research the details of all grants or schemes, even if you’re not a first home buyer. As an example, buyers who haven’t owned a home for over 10 years are eligible for the Federal Government’s 5% Deposit Scheme which is actually marketed as a first home buyer scheme.
Co-buying with someone you trust is an option for solo buyers, and they don’t have to be a spouse or partner. Friends and siblings are teaming up and buying as co-owners of Melbourne properties, with the security of a formal agreement to avoid potential risks.
Rentvesting is a method that is working for some solo buyers, allowing them to build equity in a property by renting where they want to live or living at home, and buying an investment property in an affordable Melbourne suburb or country region. Being able to show potential rental income may help you secure a home loan for an investment property. You can live in it later, or sell it and use the equity to buy where you want to live.
And if you’re single and thinking that buying a home in Melbourne will never happen for you, why not chat with our buyers advocates who have helped many buyers just like you get started in property.
Chat to us about how a property advocate can help you sell or buy in the current market with confidence. Investment buyers can receive invaluable support and guidance through our Buyers Advocacy Service, and for landlords who are selling, our Vendor Advocacy Service helps vendors achieve outstanding results.
To book a free 20-minute consultation, simply click here and choose a time convenient to you.
