Young couples are choosing an altered approach to saving for a home
With Australia's housing market recently being categorised as "Severely Unaffordable," many younger Australians are finding they need to take an altered approach to saving for a new home and reducing their home loan repayments.
One brazen strategy a growing amount of mid-20 to early 30 year old couples are taking advantage of is to move back in with their parents. The tactic effectively removes rent and other coherent costs from their budget, helping them to save larger deposits at a much faster rate. And their parents are eager to help them get a foot on the property ladder, "I actually have one mum who is taking care of the whole thing for her son because she really wants him to get into the market, Sydney mortgage broker Lee Banh told news.com.au
While this may be a great saving plan, money.msn.com warns that moving back in with your parents after years of independence can be a dramatic cross roads experience, advising couples should take steps to make the transition as easy as possible for themselves and their parents.
Moving back home for a period to save up funds for buying a new home is one good idea. However, young Australians should also be considering comparing home loans before buying, where choosing a low rate home loan could knock thousands of dollars off on their repayments.
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