With it now taking upwards of 21 years for Brisbane residents to save for a deposit, many first home buyers are looking for alternative ways onto the property market.
Backed by CommBank, Australian fintech OwnHome, has now been officially launched in Brisbane. Ownhome aims to make homeownership achievable through its live-to-own model, removing the initial barrier of saving for a home deposit, so those without access to the bank of mum and dad can find their dream home sooner.
James Bowe, Co-Founder at OwnHome, said: “ Launching in Brisbane is a significant milestone for us, it means our team can help more hard-working Aussies get into their dream homes sooner. ”
“For those with their eye on the Brisbane property market, there’s no need to compromise on your dream home because of the deposit gap. At OwnHome, the average cost to secure a beautiful home is just under $30k. But our focus has always been on helping buyers make the right long-term purchase decision, rather than just getting customers into homes at any cost. Once moved in, we also support our customers with Renos. Because owning a home is more than just having a roof over your head, it’s all the power that comes with it, and that could be as little as drilling a hole in your wall, or as big as adding in a family pool.” continued James Bowe, Co-Founder at OwnHome.
The live-to-own model is a proven success in improving housing affordability in Singapore, the United States and the United Kingdom, where tens of thousands of families have used it to enter runaway property markets. OwnHome is pioneering the model in Australia, which bridges the gap between saving for a home deposit and getting a home that many Australians face. Once customers have been assessed and approved, OwnHome helps them to find, negotiate and purchase their property. Customers then take the keys and move in immediately while building their security deposit through fortnightly payments.
“As a first home buyer looking to purchase in Brisbane or any other property market for that matter, my top tip to avoid overpaying for a home is checking the valuation benchmark consisting of home sales made in the last two to three months. Any older sales will be more expensive than the current market, set a firm upper limit and be prepared to walk away if the sale goes above that.
“Secondly, take a breath. Try not to get swept up in the pressure, thankfully for first-home buyers, the mad property rush has passed and you have time to make decisions. Make sure you thoroughly read the building and pest reports, speak to the strata committee, and understand the vendor motivations before making decisions.”
“Above all else, Aussies should know that live-to-own options won’t restrict their homebuying aspirations. Our customers can choose almost any home on the market within their means and they don’t need to compromise on location or lifestyle. Customers can seek the benefits of being a homeowner like making renovations – such as installing a pool, putting in a new kitchen or changing the flooring. Plus they have security – no one will turf you out or hike rents unexpectedly.”
“We know that it now takes 21 years for the average Brisbane first home buyer to save for their deposit, for those who don’t have access to the bank of Mum and Dad, despite being on a high income and having a great credit score, the deposit is a steep hurdle when it comes to purchasing a home. Most OwnHome customers are earning over $200k and have great credit scores, they just don’t have the cash in the bank for a deposit. At OwnHome, we’re passionate about helping get Aussies into the property market.
“Through transparent live-to-own model like OwnHome, Aussies get to choose their own home and live in it from day one. There’s no uncertainty through any part of embracing live-to-own paths to homeownership. Through careful financial assessments, OwnHome helps customers make the right purchase decision, rather than just getting customers into homes at any cost. Once approved, OwnHome finds, negotiates and purchases the home. Customers take the keys and move in immediately while building their security deposit through simple fortnightly payments. When ready anytime after two years, customers buy the home at the pre-agreed price with their secured deposit and become a homeowner.“
OwnHome is also available in Greater Metropolitan Sydney, Wollongong, Newcastle, and the Gold Coast.
