For those who are wanting to get started on the homebuying journey, going it alone can have its challenges compared to a couple but there are ways to make flying solo easier.

As a solo buyer, even just saving up for a deposit can feel like scaling Mount Everest without a rope. Without the benefit of a dual income, it takes longer to stash away that 20% deposit you need to avoid extra costs like Lenders Mortgage Insurance. And when it comes to getting a loan, lenders often see solo buyers as riskier, which can mean higher interest rates or stricter lending criteria.

However, around a quarter of homebuyers are buying by themselves, a figure that has stayed reasonably stable over the past 8 years, so if you are a single purchaser, you are not alone by any means. Let’s look at some ways you can position yourself for success as a solo buyer.

Strategies for success

Start with your financials

The first step is to get a clear picture of your finances and your capacity to save the deposit. Calculate your borrowing capacity and set a realistic savings strategy that includes paying down any debt such as credit cards and personal loans.

Create a budget that covers not just the purchase price and loan repayments, but also ongoing costs like maintenance, utilities, and council rates.

Potential lenders will be interested in your credit score. Take steps to improve your score by paying bills on time, reducing credit card balances, and correcting any errors. You can check your credit score through various credit reporting agencies such as Equifax, Experian, or Illion.

Know what you are prepared to compromise on

Explore different neighbourhoods or suburbs within your budget. Sometimes, areas just a little further from the city centre can offer more affordable options. Be open-minded about the type of property and the condition of the property too. Know what your ‘must haves’ are and what you are prepared to compromise on to stay within budget.

Do your homework and think long term

When you find a property you like, do your due diligence. Attend inspections, research the market value, and be prepared to negotiate. Getting pre-approved for a mortgage can strengthen your position as a serious buyer and give you an edge in negotiations.

Consider the future when making your decision. Think about resale potential, rental yields if you decide to lease the property down the line, and the overall growth prospects of the area. Buying a home is an investment in your future, so make sure it aligns with your long-term goals.

Getting help on the way

You also don’t necessarily have to go it totally alone. One option is teaming up to buy with friends or family. You could pool resources to boost your buying power and share the load of mortgage repayments and other expenses. Just make sure to have clear agreements in place from the get-go to avoid any potential conflicts down the road.

You could also consider using a guarantor—typically a close family member —who agrees to support your mortgage application by providing additional security should you become unable to make repayments.

There are also options like rentvesting, where you buy a property and rent it out to tenants while you keep renting where you currently live. This way, you’re getting a foothold in the property market and building equity, while you live in your preferred location.

And don’t forget about government grants and incentives tailored for first-time buyers. These can be total game-changers. Some grants can help cover your deposit or chip away at pesky expenses like stamp duty, making that dream home more within reach. We can help you investigate the options available to you.

Taking that journey

Buying a home on your own might seem like a daunting task, but it can also be an incredibly rewarding one. It’s about more than just bricks and mortar—it’s about creating a space that’s truly yours, where you can make memories and it can be a fantastic way to set yourself up for a financially secure future.

With careful planning, determination, and the right support, you can make your dream of homeownership a reality. We are here to help.

Deciding whether to buy a new home before selling your current one or to sell your home before buying a new one is a significant choice, and it can feel a bit overwhelming. Both options come with their own set of benefits and challenges, and your decision will be influenced by various factors, including the state of the housing market, your financial situation, and your personal preferences.

Let’s explore these considerations to help you make the best choice for your next big move.

Buying before selling

If you choose to buy your new home before selling your current one, you get to enjoy the luxury of time. You won’t be pressured to find a new home quickly because you’re not in a rush to sell your existing property. This approach allows you to take your time exploring different neighbourhoods, visiting open houses, and making thoughtful decisions without the stress of a ticking clock.

Once you’ve purchased your new home, you can move in at your own pace. This can make the transition smoother and less stressful, as you may not need to worry about temporary housing or moving twice.

However, buying before selling does come with financial considerations. A bridging loan can assist you in managing this period while you look to sell your existing property. This is a short-term loan, typically between 6 and 12 months that can help you finance the purchase of a new property while you sell your current property. While this type of loan can provide extra time you need to sell your existing property, it’s important to remember that you’ll need to demonstrate that you are able to pay your original home loan and the bridging finance loan at the same time during the period between buying and selling.

Additionally, if the market fluctuates while you’re holding both homes, you might find yourself needing to adjust the selling price of your old home, potentially affecting your financial plans.

Selling before buying

On the other hand, selling your home before buying a new one offers a different set of benefits. When you sell first, you gain financial clarity. You’ll know exactly how much money you have available for your new home, as the proceeds from the sale can be used as a down payment. This clear understanding of your budget can make the home-buying process less stressful and more straightforward.

Another advantage is that you become a more attractive buyer in the eyes of potential sellers. Without the need to sell your old home first, you’re in a stronger position to negotiate and make offers. Sellers often prefer buyers who don’t have contingencies, which can give you an edge in competitive markets. This increased leverage can be especially valuable if you’re looking to purchase in a rising market, where desirable properties might be snapped up quickly.

Yet, selling before buying also presents its own set of challenges. Once your home is sold, you may need to find a new place quickly, which can be stressful if the market is competitive or if you have specific needs. There might be a period where you’re between homes, which could necessitate temporary living arrangements. This could be inconvenient and might add to the stress of your move.

Timing the market

The state of the housing market plays a crucial role in your decision-making process. In a rising market, buying before selling can be advantageous. You’ll have the opportunity to lock in a new property at current prices before they go up further. However, you need to be prepared for the financial strain of carrying two mortgages.

Conversely, in a falling market, selling before buying might be the wiser choice. You can sell your current home and then take your time finding a new home, potentially benefiting from lower prices in the future.

Making the right choice for you

Ultimately, whether you decide to buy before selling or sell before buying depends on your individual circumstances. Consider your financial situation carefully—do you have the resources to handle two mortgages, or would you prefer the clarity of knowing your budget before making a purchase? Think about the current market conditions and how they might impact your decision. And, of course, reflect on your personal preferences and priorities for your next home.

Whatever your decision we can helping you navigate the financing complexities of buying and selling to ensure that your transition is stress-free as possible.

A cooling market as we head into the warmer months

Australia’s property market is finishing the year showing a softening in prices with annual growth in national home values continuing to ease, reducing to 5.5% over the 12 months ending November, down from a recent peak annual growth rate of 9.7% in February.

CoreLogic’s national Home Value Index (HVI) has reported a quarterly increase of 0.5 per cent, compared to around 2 per cent the same time last year. In line with a softening market the HVI recorded a monthly movement of just 0.1% – the smallest monthly gain since the growth cycle commenced in February last year. The median dwelling price in Australia now sits at $812,933, up from the same time last year at $753,654.

The weak positive movement over the quarter was supported by the mid-sized capitals, led by Perth, followed by Adelaide and Brisbane, offsetting declines in Darwin, Canberra, Melbourne and Sydney.

Increased stock levels contribute to lower growth

A rise in advertised stock levels has contributed to lower growth in home values, particularly in the weakest markets. Advertised listings have increased around 16 per cent since the end of winter across the combined capitals, with Perth (+33%) and Adelaide (+25%) recording the largest lift in advertised stock levels through the spring season, albeit from an extremely low base.

Alongside the rise in advertised supply, the number of home sales is declining. With higher levels of advertised supply and less purchasing activity, selling conditions have loosened.

The outlook

The housing outlook is likely to continue to be impacted by rising advertised stock levels and a slowdown in purchasing activity.

Interest rates appear to be on hold for the medium term. The October inflation indicator came in at a healthy 2.1% for October, well inside the RBA’s 2-3% target range; but the RBA will be looking through the headline results and focusing on the core inflation outcome, which unfortunately moved in the wrong direction in October.

One positive is labour markets are holding tight, with the unemployment rates holding at around 4 per cent for the past couple of months. Additionally, low levels of new housing supply will persist into the near future.

On the downside, affordability challenges continue to be felt across most sectors of the housing market. Economic activity is soft, and households have largely drawn down their savings buffers accrued through the pandemic. Looking at affordability measures, debt servicing ratios were at a record high in the last quarter and dwelling values relative to household incomes were also close to record highs.

Dwelling values over the quarter

Melbourne

The Victorian capital posted a -0.4% quarterly move according to CoreLogic figures, taking the city’s median dwelling price to $776,949. Investors should take note that the gross rental yield figure for Melbourne now sits at 3.7%.

Sydney

In the three months to October’s end, Sydney experienced a very subtle dwelling value change of –0.5% resulting in a median of $1.196 million. The gross rental yield for the Harbour City is currently the lowest of the capitals at 3.0%.

Brisbane

The Queensland capital has again recorded the second most expensive spot for dwelling values at $886,540, although growth is softening after a quarterly rise of 1.8%. Brisbane has recorded a gross rental yield of 3.7&.

Canberra

The national capital recorded a decline of -0.3% during the quarter with the median now sitting at $851,731. For Canberra, the gross rental yield is 4.0%.

Perth

Continuing its lead as the best-performing capital over the quarter, Perth jumped 3% in three months taking its medium to $808,090. Perth recorded 4.2% gross rental yield.

For more information about how you might be able to purchase a property in the current market, get in touch with us today.

Note: all figures in the city snapshots are sourced from: CoreLogic’s national Home Value Index (November 2024) 

If you have any questions or need any information please give us a call on 039723 0522.

Stay up to date with what’s happened in the Australian economy and markets over the past month.

While headline inflation eased to 2.8% in the September quarter, the RBA appears cautious on interest rates.

The RBA Governor stated that Australia’s core inflation remains too elevated to justify interest rate cuts in the near term.

The sharemarket reacted to the RBA’s comments in the last days of a month that had seen several all-time highs as markets globally reacted to Donalds Trump’s win.

Click here for our December update video.

Please get in touch on 03 9723 0522 if you’d like assistance with your personal financial situation.

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Croydon, Victoria 3136

Email: integrityone@iplan.com.au

Telephone : 03 9723 0522

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This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.

With Christmas nearly upon we’d like to let you know that the office will be closed from 5pm Thursday 19^th December 2024 and will re-open at 9am Monday 6^th January 2025. 

Ah, Christmas! – the time of year when your bank account shrinks, your social calendar explodes, and your family dynamics resemble a poorly scripted soap opera. As we navigate this festive minefield of shopping, social gatherings, and feasting, it’s common to feel a little frazzled.

In fact, research has found that the holiday season is one of the six most stressful life events we go through, in the same category as moving house and divorce.ⁱ

But it does not have to be – before you let the silly season get the better of you, here are some ways to not just survive, but thrive, to make it through the festive chaos and bring in 2025 feeling energised and on track to reaching your goals.

Get organised

Let’s face it, the silly season is a whirlwind. Between work parties, family catch-ups, and obligatory gatherings with distant relatives you only see once a year, it’s enough to make anyone want to retreat to a deserted island.

However, rather than running off to Bora Bora, if you want to survive the silly season relatively unscathed, planning ahead is a must. With the social calendar filling up quicker than you can say cheers, it becomes easy to overcommit and leave yourself feeling a little stretched. Rather than maintaining a constant schedule of parties and social engagements, why not learn the power of saying ‘no’. Choose the events you really want to attend and think about each invitation before you send that RSVP. Remember to allow for some guilt-free ‘down time’ amongst all the festivities.

Shopping shenanigans

Shopping during the silly season can be akin to a scene from an action movie—chaotic, frenzied, and with a distinct chance of an all-in brawl.

Channel your inner Santa Claus and make a list. And yes, check it twice! A good list keeps you focused and reduces the chances of impulse buys—like that life-sized inflatable Santa that seemed like a good idea at the time. (Spoiler alert: it wasn’t.)

Consider shopping online, too. You can sip your coffee in your pyjamas while avoiding the chaos of the shops. Just remember: the delivery cut-off dates are real! Don’t be the person frantically searching for gifts at 9 PM on Christmas Eve.

The present predicament

Let’s talk presents. It’s lovely to give and receive gifts, but when did we all agree that every adult needs a new mug or another pair of socks?

To combat the gift-giving madness, consider doing a Secret Santa among adults. Set a reasonable budget and unleash your creativity. Who doesn’t want a mysterious gift that could range from a novelty toilet brush to a box of chocolates?

Navigating the family dynamics

Family gatherings can be a delightful mix of love, laughter, and the occasional argument that would make for great reality TV. You know the drill—everyone has an opinion, and even the Christmas ham can become a hot topic of debate.

Before the big day, set some ground rules. No politics, no discussing that relative’s questionable life choices, and absolutely no karaoke unless everyone is fully prepared to participate. If tensions start to rise, a little humour can go a long way. Embrace the absurdity of it all. If Uncle Bob starts arguing about the best way to cook prawns, counter with a story about how Auntie Sheila once tried to deep-fry a turkey—because that’s a Christmas classic in its own right.

Don’t try to do it all

If you’re hosting this year, congratulations! You’re officially in charge of managing the chaos. But you don’t have to shoulder the entire load.

Encourage those who are coming to bring their ‘special’ dish. Not only does it lighten your load, but it also allows everyone to show off their culinary skills (or lack thereof). Plus, you might discover that Aunt Margaret’s “special” potato salad is actually a hidden gem—just don’t ask what’s in it.

Survive and thrive

At the end of the day embrace the chaos, lean into the hilarity of when things don’t go to plan, don’t take it all too seriously and be prepared to step back a little when you need a break from all the festivities.

Here’s to a joyful festive season filled with laughter and the wonderful chaos that is Christmas. We’ll catch you on the other side. Cheers!