The Real Reason Why You’re Struggling To Buy Your First Home

The first home buyer market has been in meltdown for many years now. With rocketing house prices, high cost of living and minimal wage growth, saving for a deposit alone has been difficult and many Australians feel it is out of reach for the average Joe! Then came the Royal Commission into the banking sector. As this left the banks running scared, it was difficult already, however lending money has now become scarcer and harder than ever. With that, we have seen a dip in property values and buyer interest across most major markets. While that potentially signals hope for property entrants, in reality, it hasn’t really helped with a general loss of confidence in the market and therefore an even tougher lending environment. Then came the typical ‘election pause’ as we waited to see who would win government and what that might bring for the struggling first home buyer. So, with all that being the case, we wonder, “When will it ever be possible for first home buyers to enter the property market?”

A Flicker Of Light

As the election result became clear, there appeared a skip in the step of the housing market. With talk around the changes to negative gearing disappearing overnight and the hopes of a first home buyer deposit scheme, as pledged by the now government, soon to become a reality. Both of these factors have given an immediate general lift in sentiment plus a number of key market indicators have given hope back to the property market. But what does a positive property market do for the first home buyer? For most early entrants, lending is a necessity. If money dries up so do the hopes of the first home buyer, even if they have their deposit organised. The environment simply becomes too clouded and filled with doubt for banks to take a chance on new entrants. So, the property market needs to be buoyant and robust so they can be supported by way of money.

The Real Reasons

However, putting all that to one side for a moment. I’m sure you have seen the article published by The Gaurdian back in May 2017, following an episode of 60 Minutes, where Australian real estate mogul Tim Gurner rubbed the millennial generation the wrong way. Both of these factors have given an immediate general lift in sentiment plus a number of key market indicators have given hope back to the property market. But what does a positive property market do for the first home buyer? For most early entrants, lending is a necessity. If money dries up so do the hopes of the first home buyer, even if they have their deposit organised. The environment simply becomes too clouded and filled with doubt for banks to take a chance on new entrants. So, the property market needs to be buoyant and robust so they can be supported by way of money. Tim Gurner – Advice to Millennial Home Buyers He had some simple advice for millennials struggling to purchase a home: stop buying avocado on toast. While the article is a great read and the video compelling, it is not the whole picture in our opinion. The headline message was about saving money but he also hammered home the message of working hard and being driven.

“While many are likely doing this already, we also believe that buying a home is simply a process one must follow. A game plan if you like, combined with the discipline to follow through on the plan“

As a conveyancing solicitor, where we see things come unstuck is simply in the lack of commitment to a plan. The plan is the easy part, sticking to it is when things get tough. So, what can throw things off course? We think it is the lack of truly independent advice is where wide-eyed home buyers can get hoodwinked from time to time with advice from well-intentioned others sending them the wrong message. Think about it. Friends and family, while meaning well can often get it wrong when they give advice on property, savings, finance, conveyancing, inspections and other areas where they would clearly have limited experience. Lending Agents and Mortgage Brokers, while certainly capable of giving lending advice, one shouldn’t listen to them in other areas. Real Estate Agents while typically experienced in property transactions, are actually obligated by legislation to act in the best interests of the seller (not the buyer) and so ‘advice’ provided here should be dealt with cautiously.

So Who Can Help?

Who can you trust to help you navigate your way to a successful home purchase? Trying to remain as modest as possible here, it is actually your solicitor that you can lean into unequivocally for advice and direction. Your solicitor, while not an expert in finance or real estate, can not only take care of all the legal stuff, however, they are the one independent resource to oversee the whole process. Why, because you pay them to do so! They are not influenced by kick backs, referral fees or commissions. You simply pay them to do a job! Simple as that. Your solicitor stands in the gap to represent your best interests throughout the buying process and if they are a good one, they will help keep you on track towards your goal. At Granleese and Co. we are so dedicated to helping first home buyers navigate the murky waters, they have identified a 3 phase model to help guide their clients on the road to home ownership. Planning | Positioning | Purchasing Each stage has plenty of key steps to take plus workarounds for if and when you get stuck along the way.

A New Way

Granleese and Co. have developed what they call the Simple 9-Step Home Buyers Guide which is a blueprint of the model they use to turn prospective home buyers into home owners! The goal here is to educate people on exactly how to own the home of your dreams using our 9 steps? Build your very own “Home Buying Action Plan” This is the exact 9 step model we use for ourselves and our clients, but ALSO many of the homeowners in Australia use each and every day… In short, this is the stuff that works right now! Get one step closer to where you want to be and… ????Download The Simple 9 Step Home Buyers Guide Now ????http://www.riverinalegal.com/access You are going to wish you knew this stuff sooner.