Thinking about buying a place on your own? It can be done – you got this!
Going solo with your first home offers some exciting advantages. No need to compromise on what – or where – you buy, and no toing and froing over who will pay for what. But challenges can lie ahead for the solo buyer. Here’s what you need to know.
You’re free – really free – to choose your home
When you’re buying alone you have absolute control over the selection of your first home. There’s no need to meet a middle ground with what a co-buyer wants. And when it comes to the location you buy in, you’re free to pick your preferred postcode.
You have control of your saving power
As a solo buyer you also have control over how you save for a deposit. If you have the occasional budget blow out, you’re only answerable to yourself. Though on the flipside, there’s no co-buyer to keep you motivated to save. It means you’re going to need some pretty strong willpower. But dig deep – with discipline you can stick to your savings plan.
You won’t be weighed down by someone else’s dodgy credit record
You may have a great track record for managed debt, and that can be a real asset when it comes to applying for a home loan. Buying alone can avoid the problem of a co-buyer, who may have a few dents in their credit record – something that can be a stumbling block when you buy with someone else. On the other hand, if you buy alone, you have a very good incentive to keep paying your bills on time. It can help to maintain a strong credit score when you can’t rely on someone else to carry the load for you.
FHOG benefits aren’t impacted
Buying a place on your own shouldn’t mean missing out on any First Home Owner Grant entitlements. The Grant is payable per transaction, not per buyer, so if you’re eligible, the same amount applies no matter if you buy individually or with a co-buyer.
You’ll be relying on the power of one
One of the key benefits of buying a home with someone else is that you’re able to pool resources – potentially doubling your ability to grow a deposit and meet home loan repayments.
When you buy alone, you need to be able shoulder the full financial load on your own. This makes it important to be quite sure that your budget can handle your home loan repayments – even if interest rates rise.
Remember too, owning a home comes with additional costs. You need to allow for household bills like council rates, strata levies (if you buy an apartment), repairs and maintenance, and home and contents insurance. This makes it worth drawing up a budget that includes all the costs of being a home owner to be sure you can afford to maintain a home on your own and still enjoy a fun lifestyle.
Talk to us to find out how much you can borrow, and to get a clear idea of your monthly loan repayments. It’s a good starting point when you plan to buy your first home on your own.
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- Chapter One : Getting started
- Chapter Two : Your Dream Home
- Chapter Three : Money Matters
- Chapter Four : Ways to Purchase
- Chapter Five : Understanding Interest Rates
- Chapter Six : Understanding Home Loans
- Chapter Seven : Lending Sources
- Chapter Eight : Getting Your loan
- Chapter Nine : Choosing a Home
- Chapter Ten : Steps to Settlement