Cohabitation is on the increase
Most couples opt to cohabit with each other before deciding on investing in a home that they will one day own. According to the Australian Institute of Family Studies, cohabitation has increased by 77% for both singles and couples and is most likely to occur amongst millennials. A great proportion of Australians are also marrying later in life, with four out of five living with each other before tying the knot, which delays home ownership.
Joint forces make’s financial sense for couples
Being single can make it a bit tricky in the financial section of your life when trying to secure a home. If you are single and earn an average income your chances of buying a home are slim, as it will barely cover the median house price in any of the major capital cities. The average weekly earnings for Australians stood at $1164.60 last year according to the ABS research data. This means in a year the average income is $60,559.20. This will barely cover your mortgage for a home in Perth that has a median house price of $589,100.
Start putting away money
Unless if you have a strong savings account for a down payment on your home deposit coupled with a healthy credit record for a home loan, then Bob’s your uncle. The reality is most millennials are still on the come up, already trying to make ends meet to pay other expenses. On the other hand couples can combine their income into one to make for a stronger chance of securing a home loan for their house. Your best bet is to re-evaluate your budget and finding places where you can make cuts to save towards your deposit.
Lean on me when finances are not strong
For both couples and singles calling on the bank of mom and dad seems to be an appealing platform when they are still trying to find their feet to finance their home. 29% of first-home buyers rely on their parents to help them fund a purchase that can get them towards securing a loan for their homes. Parents need to understand the implications that come with signing up as a guarantor on a loan. Seeking legal help is also advisable before signing your name on the dotted line.
Before you run for a house walk towards a loan
Securing a loan whilst single can be a bit of a process when compared to couples. Married people get viewed as one entity when they are being reviewed for a home loan, unlike singles who are reviewed individually. Compare the market for a loan with fees, features and interest rate that matches your financial situation.
Involving your partner in the home loan application process can leave room for any quarrels when it comes to the question of ownership. It’s advisable that you seek advice from a home loan specialist or legal advice to provide security in the event when things take a short left. It will also help when it comes to paying off the loan when you are unmarried or decide to go separate ways.