Buying property in Adelaide as a single person isn’t easy. The home loan system may favour two incomes, but solo buyers still have options.
Once upon a time both singles and couples with a reliable income, savings history and a deposit could pop in to see the bank manager, obtain a reasonable mortgage, buy a classic three-bedroom house, and live happily ever after. Today, it’s a different story.
With data showing that singles on average salaries are priced out of the market in 99% of capital city suburbs throughout Australia, being a “solo buyer” is more akin to fantasy than fact. Almost, but not quite, if you approach it differently.
Rethink Your Goals
Recognising that single income buyers don’t have the benefit of shared living expenses and the backup income that lenders prefer, a shift in mindset and a change of tactics might needed to get a foot in the door of Adelaide’s fast rising property market.
Rethinking where to buy, what to buy, and how to buy is key when you’re going it alone and the traditional home loan processes don’t work for you.
Suburbs to Consider
Broadening your horizons on where to buy may help you get a foot in the door, remembering it doesn’t have to be your forever home. In Adelaide, unit and townhouse medians in the Salisbury area, Paralowie, Munno Para and Klemzig may be affordable for solo buyers, along with houses in Elizabeth North.
If your work doesn’t require you to be located in the Adelaide metropolitan area, buying a cheaper home in a regional area and relocating for a few years may be an option to consider.
Home Buyer Schemes
Solo buyers should explore the wide range of state and federal grants and home loan schemes that can provide savings and entry pathways into the property market, such as those listed on the Homeseeker website.
Explore every possible grant and scheme, even if you’re not a first home buyer. For example, single buyers who haven’t owned a home for over 10 years are eligible for the Federal Government’s 5% Deposit Scheme which is marketed as a first home buyer scheme.
South Australian nurses, paramedics and police officers can also benefit from special loan conditions provided to essential workers through a range of loan providers such as People’s Choice.
Co-ownership
Co-buying with someone you trust is an option for solo buyers, and they don’t have to be a spouse or partner. Friends and siblings are teaming up and buying as co-owners, with the security of a formal agreement to avoid potential risks.
Rent-vesting
As a solo buyer you may be able to build equity in property by renting where you want to live (or better still, living rent-free at home) and buying in an affordable suburb such as Adelaide’s northern suburbs or regionally. Having rental income to pay the mortgage may help you secure an affordable home loan if the numbers stack up.
If you are determined to buy property in Adelaide, the friendly team at Boffo Real Estate are cheering you on! We’ll do everything we can to help solo buyers get a foot in the door, so take advantage of our insight, experience and wide range of industry contacts by getting in touch today!
