Can I buy a home if I’m single?
All the single humans, put your hands up! While being single is a great chance for you to develop and grow independently and can come with a lot of perks (i.e. hogging the bed and always getting to watch the movie you want), when it comes to finances and buying a home it’s no secret that two incomes can make the saving process a lot easier than one. Recent data shows that being single can almost lock you out of the property market completely across Australia’s capital cities (gasp). And so begs the question… ‘can I buy a home if I’m single’?
With one income and often the same expenses as a couple, single people are first to feel the wallet pinching. Rent alone can sometimes take up half of your weekly income while the rest gets eaten up by bills. If your single a** has a 5% deposit and an income upwards of $50,000 per year, then you should definitely check out if you can already buy a home, fill out this form to find out now. And if not, it’s not all doom and gloom, we still have your back. So, here are our tips for getting in on the housing market, even when you’re single AF.
See if you meet the basic requirements that we wrote about in our other blog.
Become the financial FBI
Get to know your money situation inside out, leave no stone or bad credit card unturned. The only way to understand where you can go is to understand where you are. So, take time detailing all of your outgoings, incomings, credit rating etc. Create a realistic budget with your goals in mind and begin to cut out the unnecessary luxuries (it’ll be worth it in the long term).
Share your space
As identified, rent can be a complete savings killer. Tackling this situation first to see where fat can be trimmed will make a huge difference to your overall financial situation. Consider how important your current place is to you and whether there is an option to downgrade to a cheaper home or if not possible and you have the space, can you have a housemate move in or consider putting a spare bedroom on Airbnb? Remember to check with your property manager first though as some lease contracts will have clauses regarding subletting. If you have the opportunity to live with your parents or family, this might be the best chance at making a huge dent in your savings goals.
DIT – Do It Together
If you’re not able to purchase a property by yourself, joining forces with a close friend or family member might be a great way to get a leg up in the market and make an investment. Pulling resources into a property can help tackle some of the issues that come with owning a property and can make being approved for a loan easier when there are two incomes to consider. Whether you would like to live together or perhaps they would like the home as an investment, considering taking this step with someone can be a big move so make sure to have open and honest conversations about the expectations of everyone moving forward. Whether you would like to live together or perhaps will split the investment.
Ask for help
Asking parents or family for a personal loan towards your deposit can be a good way to avoid extra bank interest and move the process along faster. If borrowing from family ensure you still have an agreement, even if verbal, about what will be paid back, when and how. If this is not an option, family can still help out by becoming guarantors on your loan – this means they agree to an official obligation that should you not be able to repay your loan for any reason, they take responsibility for those payments. Having a guarantor can make a young, one income, loan application seem more feasible due to stability.
Find an extra source of income
When you don’t have the benefit of a second income from a partner, all of the costs associated with homeownership are on you and they can seem completely overwhelming and frankly, unrealistic. Consider ways that you could earn a second income or some extra funds to help you reach your savings goal faster, or take the pressure off everyday spending. Some simple ways to get extra cash can be having a spring clean and selling unwanted clothes, furniture or collectible items. Online surveys can be a quick and easy way to make a little bit of cash or consider using services like Shopback to get money back on your purchases – just make sure you would have bought it anyway.
Cash in on $30,000 with First Home Hero
Perhaps the BEST way to get some extra help is to purchase a house and land package through us. If you are in QLD and choose one of our packages, we can help you get $15,000 from the government and we will match that $15,000 from our own pocket so you have an extra $30,000 towards your deposit. UM, why wasn’t this the first paragraph?! If you’re interested, apply here.