An increasing number of first home buyers are joining forces with their families in a bid to crack the property market.
The cost of breaking into the property market for the first time is without a doubt, high. Even with higher LVR loans, most first time buyers still need to save tens of thousands of dollars in order to even think about buying property, particularly in capital city markets where you won’t get much for less than $500,000.
According to the latest Bankwest/Mortgage and Finance Association (MFAA) Home Finance Index, a record number of first time buyers are looking to their families to help them raise a deposit for their first home.
More than 23 per cent of the survey’s respondents said they were hoping their families could help them secure their first home, up significantly from 15 per cent in March this year. Certainly, family help can go a long way in getting first home buyers get into the market.
But rather than just begging your parents for help with your deposit, you might want to consider joining forces with your parents, and purchasing property together. Co-ownership can help get first home buyers into the property market and it can be an attractive investment opportunity for parents.
Of course, any joint venture requires careful consideration, but if this sounds like something your parents would be in the financial position to do, it might just be worth looking into.