Sydney’s median property price jumped 22.4% in the year to February, according to CoreLogic, so you might be forgiven for wondering how to enter the market amidst such fierce buyer competition.
OwnHome, which recently sold a minority stake in its business to Commonwealth Bank, offers one answer.
The rent-to-own startup will buy a home on your behalf and let you buy it back within three to seven years. Here’s how it works:
The idea is that you get to enter the market ahead of schedule, because you don’t have to save a 20% deposit.
But conditions apply. For example, if you fail to keep up with your monthly repayments or fail to find the money to buy out OwnHome, you could lose your property. Also, when you do buy out OwnHome, you’ll have to pay stamp duty, conveyancing fees and possibly lender’s mortgage insurance (LMI) as well. So read the fine print carefully and get professional advice.
If you’re a first home buyer who’s struggling to enter the Sydney property market, OwnHome is one potential answer. But it’s definitely not the only answer.
There are five other options, which fall into two categories:
Shore Financial has helped many first home buyers over the years, and can help you too. To discuss your options, call us on 1300 416 700, email us on email@example.com or fill in this online form.
To discuss your options, you can call us on 1300 416 700, email us on firstname.lastname@example.org or fill in this online form.