- Amidst skyrocketing house prices, the Australian Government is committed to supporting first-time home buyers.
- Australia’s first-home buyers continue to witness growing house deposit challenges while they are entrapped in the rent cycles.
- AffordAssist’s innovative financing solution – Deferred Deposit Agreement – replaces the need for paying hefty cash deposits for purchasing houses.
AffordAssist’s innovative financing and property solutions help alleviate the growing concerns about securing a home in the intensively competitive property market. The Australian housing frenzy seems to affect thousands of young buyers, whose dreams of ticking off the property milestones have been put on the back burner as real estate prices continue to explode.
While many have been forced to put a temporary halt on the house hunt, others are eyeing financial opportunities to facilitate their homeownership journey. In the current scenario, the Government has stepped in, providing First Home Loan Deposit Scheme and the New Home Guarantee to support the first-home buyers.
However, nothing seems enough as the Australian property market continues to register an avalanche of active bidders, snapping up even the derelict properties for millions. Meanwhile, the presence of institutional investors continues to threaten many young aspirants to be trapped in the indefinitely prolonged rent cycles.
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In such a scenario, financial and property solutions such as those provided by AffordAssist become a must in order to expedite the entry of first-home buyers in the property market.
The Growing Challenge of Arranging Deposits
While the Government’s effort has been directed towards increasing homeownership, many first-home buyers are finding themselves on a sticky wicket as property prices continue to go through the roof. Furthermore, with low interest rates driving up the prices and COVID-19 impacting the employment market, property aspirants were hit with a double whammy in the pandemic scenario.
The higher pricing means a heftier deposit amount needed to jump on the property ladder. Thus, in the current red-hot property market, many first-home buyers are exposed to years of arranging home deposits without concrete assurance of ever buying their dream homes.
Many experts predict that first-home buyers would take years to put together the money for a house in one of the capital cities based on the conventional deposit rate. Moreover, house prices have outstripped income growth, further making the ongoing struggle even more difficult.
AffordAssist’s Innovative Deposit Solution
In the current Australian housing market, the only way to buy a house for first-home buyers is to save up for the deposit while paying for the rent. However, the situation can be pretty challenging, with many finding themselves in the rent trap as they struggle between saving for the deposit and paying their monthly rental dues.
AffordAssist aims to end such worries by presenting a better alternative in the form of a Deferred Deposit Agreement (DDA). As a result, the buyers can buy with a micro deposit worth as little as A$10,000 instead of paying a 5% to 20% deposit.
The Company’s affordable housing program replaces the need for the heavy cash deposit required by the property seller with a proprietary DDA, which includes a no-interest payment plan and may be used for all or part of the deposit.
At a time when saving to purchase a house continues to become a daunting challenge amidst low-interest rates and COVID-19 induced economic turbulence, the innovative financial solution of AffordAssist appears just the right thing at the right time for many young Aussie buyers who are looking forward to fast-tracking their entry in the property market.