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Ways to Buy a House with No Deposits

  • September 16, 2020

If you're reading this, I'm earning money. Thanks for helping to feed my family. Please see our disclosure for more information. Also, any advice provided is for informational purposes only. I'm not a CPA, lawyer, or doctor, although my parents wanted me to be all three. So, talk to a professional before acting on anything you read below.

Buying a house is a dream come true for anyone. Imagine yourself having the home you have always fantasized about. There's undoubtedly nothing more thrilling than thinking about the possibilities of owning a home you have always wanted. But how can you buy your dream house when you do not have enough money at hand?

Here are some ways to obtain a house when you do not have enough money for deposits but before you get started make sure you have a great Real Estate Agent helping you navigate the market. 

Equity Loan -

This is sometimes called “second mortgage.” This is a type of consumer debt wherein a different property must already be present for this to work. It allows the consumer to borrow an amount based on the difference between the property’s current market value and the owner’s mortgage balance due. This is the right choice if you are planning to buy a second property.

Family Pledge Guarantor -

This method allows people to purchase a property through the support of a family member’s ability to secure your property’s purchase. However, only immediate family members are allowed to help you with this method. It may be your parents, your siblings, or even your grandparents. Savings or properties can be used as security for your purchase.

Owner’s Finance -

This method can be done when the property seller provides you with finance instead of the bank. Applying this technique will grant you the property. But, the seller will keep the title deeds and other contracts until you are finished paying the property in full, unlike a regular transaction wherein you will borrow money from a bank and give it to the seller for you to have the property.

Joint Venture -

This method is done by partnering up with someone who can help you obtain money as a deposit needed for the property you would like to buy. On the other hand, you will be tasked to think of strategies to increase their property’s market value to secure a higher value loan.

First Home Owners Grant(FHOG) -

People who are looking to buy a house for the first time may be qualified for a First Home Owners Grant. The government provides this grant to individuals provided that they have met specific requirements set by them.

An Inheritance or other Monetary Gifts -

You may use your parents’ monetary gifts, for example, as deposits. This is common nowadays because parents give their children money as gifts for them to buy a property.

Buying a House with a Low Price-

We always hear people say, “focus on what you have, not on what you don’t.” I am trying to say here that if you lack the resources to buy an expensive house, why not start with less costly ones? Try looking for properties that are within your budget. It is a good start for you.

We all know how hard it is to obtain a house, much less one we’ve been dreaming of having. It is doubly hard when you have insufficient funds to be used for deposits. But, there are  ways to get that home you have been longing to have! You simply have to know which method works best for you and your situation.

 

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