I have been asked to take a look at what options exist for mums who find themselves starting again in life. Most particularly newly separated mums although it applies to everyone buying property – and I’m extraordinarily proud of all of the women I have helped buy property on their own.
Its a curious fact – and one I am immensely proud of – that more than 10% of my clients are single women buying property; and often multiple properties – whereas men buying alone is less than 5%. Could be that I don’t attract that kind of client but can I tell you it’s common with my colleagues too.
So, my tips – and I have written more extensively here Buying again as a single mum by Rebecca Jarrett-Dalton on AussieMumNetwork:
- If at all possible – take over the family home, it saves you agents fees in selling and you shouldn’t have to pay stamp duty to transfer which can be a massive saving.
- Consider buying it as an investment and putting tenants in (and living more economically elsewhere) until you can afford to make it your home again (if you even want to).
- Otherwise consider building as there are stamp duty savings, and possibly even a grant (even as a second time buyer) – hey saving anything goes in your favour!
- Don’t overlook renting where you want to live and investing wisely elsewhere if that makes more sense financially
But my strong over ridding message is this market does not stand still so with obvious considerations buying anything is better than not being in the market at all – please if its in any way affordable I beg you to keep in the game, lest you can’t get back in in future. I would hate for prices to rise by $100,000, $200,000 and your deposit languish in the bank earning you next to no interest.
Now, affordable is our next consideration – lenders are looking for:
- Strong stable work history of course, hopefully in a role thats similar to what you’ve always done.
- Government assistance payments to offset your living costs – but only if they’re ongoing and reliable, so family tax benefit payments are generally ok but not parenting payment which has conditions attached for you to keep receiving it
- Child support payments are a tricky topic, only acceptable to some lenders and only where they’re court ordered and there is a good 6 month history of regularly receiving them.
So, don’t give up without exploring all of your options – we’re happy to have a conversation with you!