If only buying your first home was that easy!
It’s often said that first homebuyers should think outside the box when it comes to getting their foot on the property ladder – but not every creative approach is worth its weight in gold. We asked finance experts for the pros and cons of three first homebuyer scenarios aimed at buying a home sooner to see how realistic (or risky) they really are.
SCENARIO 1: SIBLING/FRIENDS BUY TOGETHER
An approach that is becoming more popular as affordability worsens, chipping in together with siblings or friends to buy a home is particularly beneficial for single borrowers, mortgage broker and founder of Two Red Shoes Rebecca Jarrett-Dalton says.
“You can combine your deposits. You can combine your borrowing power,” she says. “But you are joining a committee.”
Buying with a sibling? Make sure you seek legal advice in the process.
There are only two lenders that offer loans especially for this scenario, where the lending is split …