Taking that first step onto the property ladder in Matamata can seem like a giant leap.
And in the current market conditions, buying or building your first home in Matamata is a scary prospect. Interest rates are continuing to rise and lenders are scrutinizing your income-to-debt ratio like never before. Many renters are sick of pouring dead money into their landlords’ property portfolios and are starting to look outside the box for ways to secure a mortgage that they can afford, and purchase a home that they can enjoy living in.
With that in mind, let’s explore some creative lending solutions that might just help give you that crucial first step up and buying a new home in Matamata!
Why would I consider alternative home ownership?
The traditional pathway to homeownership is pretty linear. But with conventional lenders requiring a 20% deposit, this system is becoming increasingly challenging for many. Exploring alternative routes to help realise your first home goals is necessary. Here are some ideas that may accelerate your way into a new home!
Alternative options:
- Shared ownership
- Parent as guarantor
- Rentvestment
- Progressive Home Ownership
- Squirrel Launchpad
- YouOwn
- CoOwn
Shared Ownership
What is it?
Two incomes are undoubtedly favoured by lenders and this can be incredibly frustrating for much of the population. However, your relationship status shouldn’t dictate your opportunity to own a home and shared ownership is becoming an increasingly popular option.
How does it work?
Joining forces with friends or family is a sensible and viable solution for leaping into the property ladder. With a dynamic not dissimilar to flatting, the key to success is clarity from the beginning. Ensuring the legalities of the partnership are agreed upon and documented is the first step. Negotiating the little details before leaping can ensure that the process is smooth and the living arrangement is harmonious.
PROS!
- Accelerated home ownership
- Favourable financial proposition for lenders
- You can use First Home Grant and Kiwisaver
CONS!
- You need to ensure you are on the same page from the beginning and can live with the person until a point where you can part ways and buy a home independently.
Alternative Lending Structures
Rentvestment
- Less limitation on the location and style of home that you purchase.
- The opportunity to own a home and benefit from capital gains, faster.
- No access to government-funded options such as First Home Grant
- The burden of managing tenants
Interested in Building at Ballina?
Stage One House & Land Packages will be available for purchase late 2023. To register your interest and be the first to know when they’re available, leave your details via the form below.
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