How do you own your own home?

Australians aspire to own their own home. How do you do it? This was a question recently posed on my News Corp Gen Y column and while it might sound trite, the honest answer is: with great difficulty.

In June, we crunched the numbers on home loan affordability. Even at our historically-low home loan rates, an average-priced house takes 22% of after-tax income for a Victorian couple who are both on average salaries. In Queensland it takes 20% of the combined after-tax income and in NSW and Western Australia it’s 24% and 23% respectively. Heaven forbid if one of those two people should lose their job, want to take time out for study or take any unpaid maternity or paternity leave.

So if you do want to own your own place in a good location then the best advice I can suggest is to study hard at university, choose a career that you love and work really, really hard to excel at it. Because in the absence of any government appetite to limit the unfair influence of investor power in the housing market then you truly will need, as our Federal Treasurer baldly stated earlier this year, a good job. A really good job. As well as an ability to save.

Home loans: Going guarantor

Another option to get into the market is to potentially either borrow money from your parents or ask them if they would be willing to go guarantor. It’s not a request that should be made or granted lightly. If your parents go guarantor on your loan it means that they will be liable for the loan if repayments are not made. To be a guarantor it also means that your parents need to be able to demonstrate the capacity to repay.


Once you have managed to buy a home, of course, you still don’t really own it: the bank does. And by the way – make sure you compare home loans before you sign up as they can vary significantly in cost! Anyway – once you have your home loan it makes sense to get it paid off as quickly as possible. As an example, a $300,000 home loan over 30 years at an interest rate of six percent will cost around $647,000 by the time you pay it off. If you increase your repayments by, say, $300 per month though, that same loan would be paid off in 21 years at a total cost of $527,000. The same home, owned nine years sooner, and costing $120,000 less. That’s a good savings strategy!

Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE