There are stories of families with over a $100,000 in saving but are still unable to secure a home. But at 27-years old, longtime-renter Kate Walker manages to buy one with just a $50,000 deposit and government schemes.
Even with a frugal lifestyle, the teacher was worried her dream of homeownership was about to be given up as property prices started to soar; especially across the New South Wales territory.
However, she managed to buy an apartment in Wollongong for $594,000, which includes two bedrooms, two bathrooms, and parking, by making use of government schemes.
HOW SHE DID IT
The National Housing Finance and Investment Corporation (NHFIC) administers three Schemes on behalf of the Australian Government.
The First Home Loan Deposit Scheme supports people to buy their first home sooner, with a deposit of as little as 5%.
The New Home Guarantee supports people to build or buy a new home, with higher property price caps available in selected areas.
The Family Home Guarantee aims to support eligible single parents with at least one dependent child in purchasing a family home, with a deposit of as little as 2%.
Depending on which state people reside in, they may be eligible for a First Home Buyer Grant which helps give a boost to their deposit.
People can also look at a Family Guarantor Loan which allows them to borrow the full purchase price and costs, including stamp duty.
WHAT’S IN STORE FOR HER?
Being a renter for about 8 years, she’s looking forward to the security of homeownership and not having to live by landlords’ rules
“When you are in rental there is always a fear they might not renew the lease or might sell the property,” she said.
Walker urges people to become more financially literate and to take the time to research to be more aware.
