The first home-buying process can be difficult for a variety of reasons. Navigating the mortgage process and understanding the various loan options can be complex. There may also be a lack of knowledge of the home-buying process and what to expect.
Additionally, it can be difficult for first-time buyers to come up with a down payment and closing costs.
A Gold Coast-based company in Australia that offers low deposit finance options has seen a significant number of clients who can afford the loan repayment; however, saving a deposit of $100,000 or more proves to be extremely difficult.
Large, ongoing expenses such as rent, fuel, and grocery bills are the main reason why they are struggling, and the situation doesn’t appear to be easing up anytime soon.
Chaice Paterson of Low Deposit Homes states, “the biggest problem people have is saving a deposit for their first home. The cost of homes has increased dramatically in the past 40 years. This means the deposit required now is significantly larger than at any other time.”
In addition, excessive consumption of goods and services means that many people in today’s society are constantly loading up too much debt, relying on credit cards for purchases and “buy now, pay later” services. The use of too much credit is often a clear indicator that someone is living beyond their means.
As a young broker, Chaice Paterson came across this issue constantly with first-home buyers, which is why he decided to introduce low deposit options to the market for first-home buyers.
He states, “we know our clients can pay things off; they just haven’t had the extra income to save the full deposit amount at the same time. The other issue is that prices continue to rise over time, so when people are saving, the market is outgrowing their savings. Effectively this means the goal posts are constantly changing.”
For Low Deposit Homes clients, any movement in the market is not of concern, according to Chaice, as people continue to pay rent regardless.
When it comes to the future of real estate, Chaice believes house prices will stabilize, stating, “we won’t see the crazy growth that we did throughout the covid pandemic period.
He explains that currently, there is little supply in the market, yet demand is still high. “I feel that the prices may stagnate as the market normalizes and then slowly increases again in the future.”
Backed with strong expertise and an in-depth background in finance, Chaice Paterson has paired with other industry experts to build the team at Low Deposit Homes. They work alongside several lenders to create specialized finance products that are not publically available to help first homeowners get onto the property ladder faster.
Seeking advice from real estate and finance experts can make the first-home-buying process much easier. They can guide you through the process and help you find the best deal while also providing valuable advice and information that can help you make the best decision for your first home purchase.
