Alternative strategy for first home buyers
Brad and Sarah are a professional couple with good incomes and excellent saving capacity. Many years ago, they wanted to buy a home so they could get into the property market early in their lives.
They had saved a very big deposit and it seemed likely they would add more properties throughout their lives.
The main challenges
Sarah and Brad had significant savings when they came to Vision wanting to buy their first home. Initially, they wanted to maximise their contribution, minimise their loan, avoid lenders mortgage insurance and pay off their home loan as soon as possible.
Sarah and Brad could pay this loan off very quickly BUT may like to keep the property as a future investment (as it was in a good area of Sydney). We posed a number of questions to them which was about focussing on the future.
A lot of people sell their first home in order to buy a bigger place, but Sarah and Brad’s savings pattern was so good, alternative strategies felt more suitable.
What was done
The strategy that Sarah and Brad settled on involved: