When you look in real estate agents' windows and online, buying a house can seem like an impossible dream. The average price of a house in Australia is now over half a million dollars. Of course, there are houses available cheaper than this. But, with a standard deposit of 20%, even a $400,000 house will mean you need $80,000 upfront.
The good news is that you can reduce this value even further by looking at what your local real estate auctioneer has to offer. Providing you do your research first you can get a property for a fraction of its real value. But, you need to proceed with caution and you’ll have to use one of the following methods to buy a house without putting any money down.
Check For Grants
In most states, the government is offering incentives to get people on the property ladder. You can get a grant that covers the deposit for you and help you get on the ladder. You’ll have to check the conditions in your state and apply to get approval before starting the bidding.
Property owners can check to see if they qualify for grants from various state and federal agencies. Grants can be used for a variety of purposes, such as fixing up the property, making repairs, or purchasing new equipment. Grant eligibility varies from agency to agency, so it is important to check with each one to find out what is available. There are many grant programs available, so it is best to begin your search by visiting the website of the particular government agency you are interested in.
If your family is comfortably off they may be prepared to donate the funds you need. This is a monetary gift and must be properly declared. You can then use the funds as your deposit.
Taking care of loved ones is a challenging task, but it's one that's often required. In some cases, families may be able to pitch in and help out financially.
If you're considering asking your family for financial assistance, there are a few things you need to consider first. You don't want to come off as ungrateful or make them feel uncomfortable, after all!
If you already own a property and don’t want to sell it you can refinance. This will allow you to release some or all of the equity in your existing property. The funds can be used to purchase the new property.
Of course, if you already have a property you may not be able to afford the price on a second property. However, if this is the case you can rent the property and start an investment portfolio.
Buying off-plan means choosing a property that hasn’t yet been built. You’ll normally get it for a reduced rate as the developer wants money to complete the build. The best thing about this approach is the valuation of the property is likely to be higher than the purchase price. As lenders tend to go on the valuation you can borrow up to 95% as a first-time buyer and avoid having to put any of your own money down.
Off-plan property is a great way to get into the property market without having to commit to a purchase upfront. By purchasing off-plan, you can save money on your purchase and have more flexibility in when and how you want to buy the property. There are a number of benefits to buying off-plan, including:
- You can save money on your purchase by purchasing off-plan.
- You can have more flexibility in when and how you want to buy the property.
- You can avoid delays in getting your property purchased as well as any associated stress that may come with buying a home.
- Off-plan properties tend to be less expensive than properties that are already built, making them an excellent option for those wanting to buy their first home or upgrade their current one.
As with any purchase, it is best to do your research first.