Aaron Whybrow explains how to build a home deposit when you have little borrowing power. He covers saving the rent-mortgage gap, first home buyer benefits, and family pledges as ways to get into the Sydney property market.
Questions this video answers
Aaron Whybrow
November 27, 2018
$1,500 and $2,500 per month (examples)"
"3,3000amonth" (transcribed as spoken; likely intended as about $3,300 per month)
$500 difference (example given)
Hey there again, just wanted to give you another video on low to no borrowing power. A lot of inquiries are coming across my desk recently with either no dollars in the deposit that they have or very limited. And in the current climate of needing a deposit for a home and having more and more restrictions around that, a couple of tips I wanted to give you to get around this. I get it, it's hard, I get it, it's hard to buy in Sydney, have a deposit as well and pay your rent and have a life, go on holidays. But the rewards of being able to be a homeowner can overcome those things going forward into the future. Especially when you want to do something to the house or buy an investment property or go on a bigger holiday when you own a home, some of these things can become a lot easier. So how do we overcome a deposit? Number one is the hard slog. The hard slog is something that you can think about with what you pay in your current rent and what a mortgage would cost you. Currently in Sydney, I'm finding that the rent is a lot less than some of the mortgages that are around. So if you've got a gap between what you're paying in rent, say $1,500 a month, $2,500 a month, and your mortgage is going to be 3,3000amonth, there's already a $500 difference that you can put in the savings and start moving towards your goal of home ownership. The other one is the first home buyers benefits. In New South Wales and other states there are first home buyers benefits and that can help you with the stamp duty and also the deposit. But there are restrictions on the dollar figures that those benefits will come into place. So you can check out the Office of State Revenue, give me a call and we can go through that. The other one is you can go down the line of a gift, inheritance, things like that that can come into your ability to have a deposit for a home. The other way is that you have a family pledge and a lot of the lenders will do a family pledge where they would take equity or a second security like a family member's home on title. To be able to lend you 100%, you would be responsible for 100% alone. But there's a little bit of assistance from family to be able to get in there. It's not without its own risks, but it is a way that we can overcome the deposit. So if you have any questions about how you can get your deposit together, you got a low level deposit, you need a little bit of advice or directions on it, or even just someone to show you what the total cost would be for a deposit and the suggested deposit that we need for a certain type of home. Just reach out, respond to this email or call me soon. Bye for now.
